What is ‘Insider Trading & SAST’?

When insiders such as key employees, promoters, or directors of the company trade the company’s stocks or securities, they report these transactions to the exchange.

Note that this is not an illegal activity since these individuals are disclosing such transactions to the exchange and SEBI. The phrase is used here since these transactions are filed under the regulation with the same name.

Trendlyne provides you with the ‘Insider Trading & SAST’ (Insider trading and significant acquisitions) feature that is disclosed under SEBI (Securities and Exchange Board of India) Prohibition of Insider Trading regulations. The disclosure is made by promoters, directors, designated persons, or key persons of the company who are buying or selling stocks in the company. 

General terms used while referring to insider trades are:

  • Purchase of shares -  when a promoter/director/key person buys the stocks, it is referred to as an ‘Acquisition

  • Sale of shares -  when a promoter/director/key person sells the stocks, it is referred to as ‘Disposal’.

  • Collateral on shares - when a promoter uses shares as a collateral for loans, it is referred to as a ‘Pledge’.

  • Released shares - when a promoter releases the pledge shares, it is referred to as ‘Revoke/Revocation’.

What is a ‘Bulk Block Deal’?

Bulk deal is generally defined as a deal where the total shares traded are greater than 0.5% of the share capital of the company. Block deals refer to a transaction of 5 lakh shares or Rs 5 crore between two parties.

Bulk Block Deals’ show large trades carried out by promoters, banks, financial institutions, foreign institutional investors, and others. Block deals take place during morning hours while Bulk deals can take place at any time during the day.