SHIVALIK BIMETAL CONTROLS LIMITED
CODE OFINTERNALPROCEDURESANDCONDUCTFORREGULATING,MONITORINGANDREPORTINGOFTRADINGBY INSIDERS
(Effectivefrom15th May 2015)
SHIVALIK BIMETAL CONTROLS LIMITED
1.Definitions
1.1“Act”meanstheSecuritiesandExchangeBoardof India Act,1992.
1.2“Board”meanstheBoardofDirectorsoftheCompany.
1.3“Code”or“CodeofConduct” shallmeantheCodeofInternalProceduresandConductfor Regulating,MonitoringandReportingoftradingbyinsidersofShivalik Bimetal Controls Limitedas amended fromtimetotime.
1.4“Company”meansShivalik Bimetal Controls Limited.
1.5"ComplianceOfficer"meansCompanySecretaryorsuchotherseniorofficer,whoisso designatedandiscapableofunderstanding financial functions & requirementsforlegaland regulatory compliance undertheseregulationsandwould be reportingtotheBoardofDirectorsand shall beresponsibleforcomplianceofpolicies,procedures,maintenanceofrecords,monitoring adherencetotherulesforthepreservationofunpublishedpricesensitiveinformation, monitoringoftradesandtheimplementationofthecodesspecifiedintheseregulationsunder the overallguidance of theBoardofDirectorsof theCompany.
1.6“ConnectedPerson”means:
(i)anypersonwhoisorhasduringthesixmonthspriortotheconcernedactbeen associatedwithacompany,directlyorindirectly,inanycapacityincludingbyreasonof frequentcommunicationwithitsofficersorbybeinginanycontractual,fiduciaryor employmentrelationshiporbybeingadirector,officeroranemployeeofthe Companyorholdsanypositionincludingaprofessionalorbusinessrelationship betweenhimselfandtheCompanywhethertemporaryorpermanent,thatallowssuch person,directlyorindirectly,accessto unpublishedpricesensitiveinformationoris reasonablyexpectedtohave such access.
(ii)Notwithstanding thegeneralityoftheforegoing,thepersonsfallingwithinthe followingcategoriesshallbedeemedtobeconnectedpersonsunlessthecontraryis established,:-
(a)an immediaterelativeof connected personsspecifiedinclause(i);or
(b)a holdingcompanyorassociatecompanyorsubsidiarycompany;or
(c)anintermediaryasspecifiedinSection12oftheActoranemployeeordirector thereof;or
(d)an investment company, trustee company, asset management company or an employeeor director thereof;or
(e)anofficialof astockexchange orofclearing houseorcorporation;or
(f)an official or an employee of a self-regulatory organization recognised or authorized bytheBoard;or
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(g)a bankeroftheCompany;or
(h)aconcern,firm,trust,hinduundividedfamily,companyorassociationofpersons whereinadirectoroftheCompanyorhisimmediaterelativeorbankerof theCompany,hasmorethantenpercent,oftheholdingorinterest.
1.7“DealinginSecurities”meansanactofsubscribingto,buying,sellingoragreeingtosubscribeto, buy, sellor deal inthesecuritiesof theCompanyeither as principalor agent.
1.8DesignatedEmployee(s) shall include:
(i)everyemployeeinthe grade of Chief Manager and above;
(ii)everyemployeeinthefinance,accounts,secretarialandlegaldepartmentasmaybe determined and informedbytheComplianceOfficer; and
(iii)anyotheremployeeasmaybedeterminedandinformedbytheComplianceOfficerfrom
time totime.
1.9“Director”means amember oftheBoardofDirectorsoftheCompany.
1.10“Employee”meanseveryemployeeoftheCompanyincludingtheDirectorsintheemployment of theCompany.
1.11"GenerallyavailableInformation"meansinformationthatisaccessibletothepublicona non-discriminatorybasis.
1.12"Immediate Relative" means a spouse of a person, and includes parent, sibling, and childofsuchpersonorofthespouse,anyofwhomiseitherdependentfinanciallyonsuch person,orconsultssuch person intaking decisions relatingtotrading insecurities
1.13“Insider”means anypersonwho is ,
(i)a connectedperson;or
(ii)inpossession of orhaving accessto unpublishedpricesensitiveinformation.
1.14“Key ManagerialPerson”meanspersonasdefinedinSection2(51)oftheCompaniesAct,2013
1.15"Promoter" shall have the meaning assigned to it under the Securities and ExchangeBoard ofIndia(IssueofCapitalandDisclosureRequirements)Regulations, 2009 or any modificationthereof:
1.16"Securities"shallhavethemeaningassignedtoitundertheSecuritiesContracts(Regulation) Act,1956(42of1956)oranymodificationthereofexceptunits ofamutualfund;
1.17"Takeoverregulations"meanstheSecuritiesandExchangeBoardofIndia(Substantial AcquisitionofSharesandTakeovers)Regulations, 2011 andanyamendmentsthereto;
1.18"Trading"meansandincludessubscribing,buying,selling,dealing,oragreeingtosubscribe,buy, sell, deal inanysecurities,and"trade"shall beconstrued accordingly
1.19"TradingDay"means aday onwhichtherecognizedstockexchangesareopen for trading;
SHIVALIK BIMETAL CONTROLS LIMITED
1.20“Unpublished Price Sensitive Information”means any information, relating to a companyor its securities, directly or indirectly, that is not generally available which upon becominggenerallyavailable,islikelytomateriallyaffectthepriceofthesecuritiesandshall, ordinarilyincluding butnotrestrictedto,informationrelatingtothefollowing:
(i)financial results;
(ii)dividends;
(iii)changein capital structure;
(iv)mergers,de-mergers,acquisitions,delisting,disposalsandexpansionofbusinessand suchother transactions;
(v)changes inkeymanagerialpersonnel;and
(vi)material events in accordancewiththelisting agreement
1.21“Regulations”shallmeantheSecuritiesExchangeBoardof India (Prohibitionof Insider Trading) Regulations, 2015and any amendmentsthereto.
1.22“SpecifiedPersons”meanstheDirectors,connectedpersons,theinsiders,theDesignated EmployeesandthepromotersandimmediaterelativesarecollectivelyreferredtoasSpecified Person(s).
2.Wordsandexpressionsusedandnotdefinedintheseframework of regulatory Guidelines butdefinedinthe SecuritiesandExchangeBoardofIndiaAct,1992(15of1992),theSecuritiesContracts (Regulation)Act,1956(42of1956),theDepositoriesAct,1996(22of1996)ortheCompanies Act,2013(18of2013)andrulesandregulationsmadethereundershallhavethemeanings, interpretations and the purpose respectivelyassignedtotheminthoselegislation.
3.Roleof Compliance Officer
3.1TheComplianceOfficershallreportoninsidertradingtotheBoardofDirectorsofthe Companyandinparticular,shallprovidereportstotheChairmanoftheAuditCommittee,if any,ortotheChairmanoftheBoardofDirectorsatsuchfrequencyasmaybestipulatedbythe BoardofDirectors.
3.2TheComplianceOfficershallassistallemployeesinaddressinganyclarificationsregardingthe SecuritiesExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015andthe Company’s CodeofConduct.
4.Preservationof “unpublished Price SensitiveInformation”
4.1AllinformationshallbehandledwithintheCompanyonaneed-to-knowbasisandno unpublishedpricesensitiveinformationshallbe sought/procured from an insider and/or communicatedtoanyperson exceptin furtheranceoftheinsider'slegitimatepurposes,performanceofdutiesordischargeofhislegal obligations.
Unpublishedpricesensitiveinformationmaybecommunicated,provided,allowedaccesstoor procured,inconnection witha transaction which entails:
-anobligationtomakeanopenofferunderthetakeoverregulationswheretheBoardof DirectorsoftheCompanyisofinformedopinionthattheproposedtransactionisinthe bestinterests of theCompany;or
SHIVALIK BIMETAL CONTROLS LIMITED
-notattractingtheobligationtomakeanopenofferunderthetakeoverregulationsbut wheretheBoardofDirectorsoftheCompanyisofinformedopinionthattheproposed transactionisinthebestinterestsoftheCompanyandtheinformationthatconstitute unpublishedpricesensitiveinformationisdisseminatedtobemadegenerallyavailableat leasttwotradingdayspriortotheproposedtransactionbeingeffectedinsuchformasthe BoardofDirectors maydetermine.
However,theBoardofDirectorsshallrequirethepartiestoexecuteagreementstocontract confidentialityandnon-disclosureobligationsonthepartofsuchpartiesandsuchpartiesshall keepinformationsoreceivedconfidential,andshallnot otherwisetradeinsecuritiesoftheCompanywheninpossessionofunpublishedpricesensitive information
4.2NeedtoKnow:
(i)“needtoknow”basismeansthatUnpublishedPriceSensitiveInformationshouldbe disclosedonlytothosewithintheCompanywhoneedtheinformationtodischargetheir dutyandwhosepossessionofsuchinformationwillnotgiverisetoaconflictofinterest or appearanceofmisuseoftheinformation.
(ii)Allnon-publicinformationdirectlyreceivedbyanyemployeeshouldimmediatelybe reportedtotheheadof thedepartment.
4.3Limited accesstoconfidentialinformation
Files containingconfidential informationshall bekeptsecure. Computer filesmusthaveadequate securityoflogin and password, etc.
5.Preventionofmisuseof “UnpublishedPriceSensitiveInformation”
5(1)No insider shall trade in securities that are listed or proposed to be listed on a stock exchange when in possession of unpublished price sensitive information.
Provided that the insider may prove his innocence by demonstrating the circumstances including the following:-
(i)The transaction is an off-market inter-se transfer between promoters who were in possession of the same unpublished price sensitive information without being in breach of clause 4 of Company’s Code of Conduct and both parties had made a conscious and informed trade decision;
(ii)In the case of non-individual insiders :-
(a)The individuals who were in possession of such unpublished price sensitive information were different from the individuals taking trading decision and such decision-making individuals were not in possession of such unpublished price sensitive information when they took the decision to trade; and
(b)Appropriate and adequate arrangements were in place to ensure that these regulations are not violated and no unpublished price sensitive information was communicated by
SHIVALIK BIMETAL CONTROLS LIMITED
the individuals possessing the information to the individuals taking trading decisions and there is no evidence of such arrangements having been breached;
(iii)The trades were pursuant to a trading plan set up in accordance with clause 6 of the Company’s Code of Conduct.
(2)In the case of connected persons the onus of establishing, that they were not in possession of unpublished price sensitive information, shall be on such connected persons and in other cases, the onus would be on the Board.
(3)The Board may specify such standards and requirements, from time to time, as it may deem necessary for the purpose of these regulations.
(4) Employeesandconnectedpersonsdesignatedonthebasisoftheirfunctionalrole("designated persons")intheCompanyshallbegovernedbyaninternalcodeofconductgoverningdealingin securities.
- TradingPlan
An insider shall beentitledtoformulatea trading plan for dealing insecurities of theCompanyand presentittotheComplianceOfficerforapprovalandpublicdisclosureAnd pursuanttoapproval ,such trades may becarriedout in accordancewithsuch plan.
TradingPlanshall:
6.1.1notentailcommencementof tradingonbehalfof theinsider earlier thansix months fromthepublic disclosureoftheplan;
6.1.2notentailtradingfortheperiodbetweenthetwentiethtradingdaypriortothelast day of anyfinancialperiodfor whichresults arerequiredtobeannounced bytheissuer of thesecuritiesandthesecondtrading dayafter thedisclosureofsuch financial results;
6.1.3entail tradingfor a periodof notless thantwelve months;
6.1.4notentailoverlapofanyperiodforwhichanothertradingplanisalreadyin existence;
6.1.5setouteitherthevalueoftradestobeeffectedorthenumberofsecuritiestobe tradedalongwiththenatureofthetradeandtheintervalsat,ordatesonwhichsuch trades shall beeffected;and
6.1.6notentail trading insecurities formarketabuse.
6.2TheComplianceOfficershallconsidertheTradingPlanmadeasaboveandshallapproveit forthwith.However,heshallbeentitledtotakeexpressundertakingsasmaybenecessaryto enablesuchassessmentandtoapproveandmonitortheimplementationoftheplanasper provisionsoftheRegulations.
6.3TheTradingPlanonceapprovedshallbeirrevocableandtheInsidershallmandatorilyhave toimplementtheplan,withoutbeingentitledtoeitherdeviatefromitortoexecuteany tradeinthesecuritiesoutsidethescopeof thetrading plan.
However, the implementation of the trading plan as per 6.1 above shall not be commenced, if
SHIVALIK BIMETAL CONTROLS LIMITED
atthetimeof formulationof theplan, theInsider isinpossessionofanyunpublished pricesensitiveinformation andthesaidinformationhasnotbecomegenerallyavailableatthetimeof thecommencementof implementation.ThecommencementofthePlanshallbedeferreduntilsuchunpublishedprice sensitiveinformationbecomesgenerallyavailableinformation.Further,theInsidershallalsonot beallowedto dealin securitiesoftheCompany,ifthedate oftrading in securitiesofthe Company,aspertheapprovedTradingPlan,coincideswiththedateofclosureof Trading WindowannouncedbytheComplianceOfficer.
6.4Uponapprovalofthetradingplan,thecomplianceofficershallnotifytheplantothestock exchangesonwhichthesecurities arelisted.
7Trading Windowand WindowClosure
(i)The trading period, i.e. the trading period of the stock exchanges, called ‘trading window”, isavailablefor trading intheCompany’s securities.
(ii)Thetradingwindowshall be, inter alia,closedwhenever Compliance officer deems fit priorto and duringthe timethe unpublished pricesensitive information is published.
(iii)Whenthetradingwindowisclosed,theSpecifiedPersonsshallnottradeinthe Company’s securities insuch period.
(iv)AllSpecifiedPersonsshallconductalltheirdealingsinthesecuritiesoftheCompanyonly inavalidtradingwindowandshallnotdealinanytransactioninvolvingthepurchaseor sale oftheCompany’ssecuritiesduringtheperiods whenthetradingwindowis closed, asreferredtoinPointNo.(ii)aboveorduringanyotherperiodasmaybespecifiedbytheCompanyfromtimetotime.
(v) IncaseofESOPs,exerciseofoptionmaybeallowedintheperiodwhenthetrading windowisclosed.However,saleofsharesallottedonexerciseofESOPsshallnotbe allowedwhentrading is closed.
7.1TheComplianceOfficershallintimatetheclosureoftradingwindowtoallthedesignated employeesoftheCompanywhenhedeterminesthatadesignatedpersonor classof designatedpersonscanreasonablybeexpectedtohave possessionofunpublished price sensitiveinformation.Suchclosureshallbeimposedinrelationtosuchsecuritiestowhich suchunpublishedpricesensitiveinformationrelates.
7.2TheComplianceOfficeraftertakingintoaccountvariousfactorsincludingtheunpublishedprice sensitiveinformationinquestionbecominggenerallyavailableandbeingcapableofassimilation by themarket,shalldecidethetimingforre-openingofthetradingwindow,howeverinany
eventitshall not be earlier than forty-eight hours after the information becomes generally available.
7.3Thetradingwindowshallalsobeapplicabletoanypersonhavingcontractualorfiduciary relationwiththe Company,suchasauditors,accountancyfirms,law firms,analysts, consultants etc.,assistingoradvisingtheCompany.
8Pre-clearanceof trades
8.1AllSpecifiedPersons,whointendtodealinthesecuritiesoftheCompanywhenthetrading windowisopenedandifthevalueoftheproposedtradesisabove50,000sharesoruptoRs.10 Lakhs(marketvalue)or1%oftotalshareholding,whicheverisless,shouldpre-clearthe transaction.However,nodesignatedpersonshallbeentitledtoapplyforpre-clearanceofany
SHIVALIK BIMETAL CONTROLS LIMITED
proposedtradeifsuchdesignatedpersonisinpossessionofunpublished pricesensitive informationevenifthetradingwindowisnotclosedandhenceheshallnotbeallowedtotrade. Thepre-dealing procedureshall behereunder:
(i)AnapplicationmaybemadeintheprescribedForm(Annexure1)totheCompliance officerindicatingtheestimatednumberofsecuritiesthattheSpecifiedEmployeeintends todealin,the detailsastothedepositorywithwhichhehasasecurityaccount,the detailsastothesecuritiesinsuchdepositorymodeandsuchotherdetailsasmaybe required byanyrulemadebythecompany inthis behalf.
(ii)An undertaking(Annexure2)shallbeexecutedinfavouroftheCompanybysuch SpecifiedEmployeeincorporating, interalia,thefollowingclauses,asmay beapplicable:
(a)Thattheemployee/director/officerdoesnothaveanyaccessorhasnotreceived “Price
SensitiveInformation”uptothetimeof signingtheundertaking.
(b)ThatincasetheSpecifiedEmployeehasaccesstoorreceives“PriceSensitive Information”afterthesigningoftheundertakingbutbeforetheexecutionofthe transactionhe/sheshallinformtheComplianceOfficerofthechangeinhisposition andthathe/shewould completelyrefrain fromdealing in thesecuritiesofthe Companytillthetimesuchinformationbecomes public.
(c)Thathe/shehasnotcontravenedthecodeofconductforpreventionofinsider trading as notified bytheCompanyfromtimetotime.
(d)Thathe/shehasmadea full andtruedisclosureinthematter.
(iii)AllSpecifiedPersonsshallexecutetheirorderinrespectofsecuritiesofthe Companywithinoneweekaftertheapprovalofpre-clearanceisgiven.TheSpecified Personshallfilewithin2(two)daysoftheexecutionofthedeal,thedetailsofsuchdeal withtheComplianceOfficerintheprescribedform.Incasethetransactionisnot undertaken, areporttothateffectshall befiled. (Annexure4).
(iv)Iftheorderisnotexecutedwithinsevendaysaftertheapprovalisgiven,the employee/directormustpre-clearthetransaction again.
AllSpecifiedPersonswhobuyorsellanynumberofsharesoftheCompanyshallnot enterintoanoppositetransactioni.e.sellorbuyanynumberofsharesduringthenext sixmonthsfollowingthepriortransaction.AllSpecifiedPersonsshallalsonottake positionsinderivativetransactionsinthesharesoftheCompanyatanytime.Incaseof any contra trade be executed, inadvertently or otherwise, in violation of such arestriction,theprofitsfromsuchtradeshallbeliabletobedisgorgedforremittanceto theSecuritiesandExchangeBoardofIndia(SEBI) forcredittotheInvestorProtectionand EducationFundadministeredbySEBIundertheAct.
SHIVALIK BIMETAL CONTROLS LIMITED
Incaseofsubscriptionintheprimarymarket(initialpublicoffers),theabovementioned entitiesshallholdtheirinvestmentsforaminimumperiodof30days.Theholdingperiod wouldcommencewhenthesecurities areactuallyallotted.
(v)TheComplianceOfficermaywaiveofftheholdingperiodincaseofsaleofsecuritiesin personalemergencyafterrecordingreasonsforthesame.However,nosuchsalewillbe permittedwhentheTradingwindowis closed.
9. OtherRestrictions
9.1ThedisclosurestobemadebyanypersonunderthisCodeshallincludethoserelatingtotrading bysuchperson'simmediaterelatives,andbyanyotherpersonforwhomsuchpersontakes trading decisions.
9.2Thedisclosuresoftradinginsecuritiesshallalsoincludetradinginderivativesofsecuritiesand thetradedvalueofthederivatives shallbetaken into accountfor purposesofthis Code.
9.3Thedisclosuresmadeunder this Codeshall bemaintained for aperiodoffiveyears.
10ReportingRequirementsfortransactionsinsecurities
A Initial Disclosure
i) Everypromoter/KeyManagerialPersonnel/Director/Officers/DesignatedEmployeesofthe Company,withinthirtydaysoftheseregulationstakingeffect,shallforwardtotheCompanythe detailsofallholdingsinsecuritiesoftheCompanypresentlyheldbythemincludingthe statementofholdingsof dependentfamilymembersintheprescribed Form.
ii) EverypersononappointmentasakeymanagerialpersonneloradirectoroftheCompanyor uponbecomingapromotershalldisclosehisholdingofsecuritiesoftheCompanyasonthedate ofappointmentorbecomingapromoter,totheCompanywithinsevendaysofsuch appointmentor becominga promoter.
B ContinualDisclosure
i) Everypromoter,employeeanddirectoroftheCompanyshalldisclosetotheCompanythe numberofsuchsecuritiesacquiredordisposedofwithintwotradingdaysofsuchtransaction if thevalueofthesecuritiestraded,whetherinonetransactionoraseriesoftransactions overanycalendarquarter,aggregatestoatradedvalueinexcess ofRs. Tenlakhs.
Thedisclosureshallbemadewithin2working days of:
(a)thereceiptof intimationofallotment ofshares, or
(b)theacquisitionor saleofsharesor voting rights, asthecasemaybe
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C Disclosure by other connected persons
Any other connected person or class of connected persons to make disclosure of holdings andtrading in securities of the Company in prescribed form.
11Disclosure bytheCompanytotheStockExchange(s)
11.1Within2daysofthereceiptofintimationunderClause10(B),theComplianceOfficershalldisclose toallStockExchangesonwhichtheCompanyis listed,theinformationreceived.
11.2TheComplianceofficershallmaintainrecordsofallthedeclarationsintheappropriateform given bythedirectors/officers/designatedemployees for aminimumperiodoffiveyears.
12Disseminationof PriceSensitiveInformation
12.1NoinformationshallbepassedbySpecifiedPersons bywayof makingarecommendationfor thepurchaseorsaleof securitiesof theCompany.
12.2Disclosure/disseminationofPriceSensitiveInformationwithspecialreferenceto analysts, media personsand institutional investors:
The following guidelines shall be followed while dealing with analysts and institutional investors
12.2.1Onlypublic informationto beprovided.
12.2.2AtleasttwoCompanyrepresentativesbepresentatmeetingswithanalysts,media persons and institutional investors.
12.2.3Unanticipated questions maybetakenon noticeanda considered responsegiven later. If theanswerincludespricesensitiveinformation,apublicannouncementshouldbemade beforeresponding.
12.2.4Simultaneous releaseofinformationafter everysuchmeet.
13Penaltyforcontraventionof thecodeof conduct
13.1EverySpecifiedPersonshallbeindividuallyresponsibleforcomplyingwiththeprovisionsofthe Code(includingtotheextenttheprovisions hereof areapplicabletohis/her dependents).
13.2AnySpecifiedPersonwhotradesinsecuritiesorcommunicatesanyinformationfortradingin securities,incontraventionofthisCode maybepenalisedandappropriateactionmaybetaken bytheCompany.
13.3SpecifiedPersonswho violatetheCodeshallalsobesubjectto disciplinaryactionbythe Company,whichmayincludewagefreeze,suspension,ineligibilityforfutureparticipationin employeestockoptionplans, etc.
13.4Theaction bytheCompanyshall notprecludeSEBI fromtaking anyaction incaseof violationof SEBI (ProhibitionofInsiderTrading) Regulations,2015.
14Codeof FairDisclosure
Acodeofpracticesandproceduresforfairdisclosureofunpublishedpricesensitiveinformationfor adhering eachof theprinciples is setoutbelow:
SHIVALIK BIMETAL CONTROLS LIMITED
1.Promptpublicdisclosureofunpublishedpricesensitiveinformationthatwouldimpactprice discoverynosoonerthancredibleandconcreteinformationcomesintobeinginordertomake such information generally available.
2.Uniformanduniversaldisseminationofunpublishedpricesensitiveunpublishedpricesensitive informationto avoidselectivedisclosure.
3.Designationofaseniorofficerasachiefinvestorrelationsofficertodealwithdisseminationof information and disclosureof unpublished pricesensitiveinformation.
4.Promptdisseminationofunpublishedpricesensitiveinformationthatgetsdisclosedselectively, inadvertentlyorotherwisetomakesuch informationgenerallyavailable.
5.Appropriateandfairresponsetoqueriesonnewsreportsandrequestsforverificationofmarket rumoursbyregulatoryauthorities.
6.Ensuringthatinformationsharedwithanalystsandresearchpersonnelisnotunpublishedprice sensitiveinformation.
7.Developingbestpracticestomaketranscriptsorrecordsofproceedingsofmeetingswith analystsandotherinvestorrelationsconferencesontheofficialwebsitetoensureofficial confirmation and documentationof disclosuresmade.
8.Handlingof all unpublished pricesensitiveinformationona need-to-knowbasis.