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    Question

    As per Reg 5C of SEBI (Prohibition  of  Insider Trading) Regulations, 2015, Can the structured digital database be outsourced?

    A Yes, as long as it is maintained with adequate internal controls Correct Answer Incorrect Answer
    B No, it must be maintained internally Correct Answer Incorrect Answer
    C It can be outsourced with prior approval from regulatory authorities Correct Answer Incorrect Answer
    D It can be outsourced only to authorized vendors Correct Answer Incorrect Answer
    E Discretion of the company Correct Answer Incorrect Answer

    Solution

    As per Reg 5C-  The board of directors or head(s) of the organisation of every person required to handle unpublished price sensitive information shall ensure that a structured digital database is maintained containing the nature of unpublished price sensitive information and the names of such persons who have shared the information and also the names of such persons with whom information is shared under this regulation along with the Permanent Account Number or any other identifier authorized by law where Permanent Account Number is not available. Such database shall not be outsourced and shall be maintained internally with adequate internal controls and checks such as time stamping and audit trails to ensure non-tampering of the database.

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