Understanding the Structured Digital Database SEBI Circular: Compliance Requirements, Scope, and Reg

The Structured Digital Database SEBI Circular has emerged as a cornerstone of insider trading compliance in India’s securities regulatory framework. Introduced under the SEBI (Prohibition of Insider Trading) Regulations, the circular focuses on ensuring transparency and traceability in the handling of unpublished price-sensitive information (UPSI).

The key objective of the structured digital database is to create a secure and tamper-proof record of all instances where UPSI is shared. Whenever sensitive information is communicated on a need-to-know basis, entities are required to log specific details, including the identity of the person sharing the information, the recipient, and the time and nature of the communication. This structured approach significantly reduces ambiguity and strengthens internal controls.

The scope of the circular extends beyond listed companies to include intermediaries, fiduciaries, and other persons who handle UPSI in the course of their professional duties. This broader applicability recognizes that sensitive information often flows through multiple stakeholders, such as auditors, legal advisors, and consultants, before it reaches the public domain.

A major highlight of the SDD SEBI circular is its emphasis on accountability. The compliance officer plays a central role in ensuring that the database is properly maintained, preserved, and available for regulatory review. Unlike manual registers or informal tracking methods, a digital database enables consistency and audit readiness, aligning compliance practices with SEBI’s expectations.

The scope of the circular is intentionally broad. It applies not only to listed entities but also to intermediaries and fiduciaries who may access UPSI during the course of professional engagements. This reflects SEBI’s understanding that insider information often passes through multiple layers before public disclosure.

From a practical perspective, the structured digital database acts as a deterrent against insider trading. The existence of a detailed digital trail makes it easier for regulators to identify irregularities and investigate suspicious trading patterns. As enforcement actions increasingly rely on data-backed evidence, the importance of accurate SDD maintenance cannot be overstated.

In summary, the Structured Digital Database SEBI Circular represents a shift toward stronger, technology-driven compliance. It reinforces ethical information handling and supports SEBI’s broader goal of protecting investor interests. For entities operating in the Indian capital market ecosystem, aligning processes with the SDD requirements is essential to maintaining regulatory trust and long-term credibility.

My name is Gloria. I am a Manager at a cooperative company and currently living in Australia. Over the years, I have been deeply involved in and providing my support to community-based initiatives, and in the process,