{"id":29504,"date":"2025-07-21T22:59:33","date_gmt":"2025-07-21T17:29:33","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29504"},"modified":"2026-02-23T22:32:13","modified_gmt":"2026-02-23T17:02:13","slug":"mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/","title":{"rendered":"Mandatory Compliance: SDD for Fiduciaries CAs &#038; Audit Firms"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e465eab175b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e465eab175b\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Mandatory_Compliance_Structured_Digital_Database_SDD_for_Fiduciaries_CAs_Audit_Firms\" title=\"Mandatory Compliance: Structured Digital Database (SDD) for Fiduciaries (CAs &amp; Audit Firms)\">Mandatory Compliance: Structured Digital Database (SDD) for Fiduciaries (CAs &amp; Audit Firms)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#What_Must_Be_Maintained_in_the_SDD\" title=\"What Must Be Maintained in the SDD?\">What Must Be Maintained in the SDD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Important_Requirements_for_Chartered_Accountant_or_audit_firm\" title=\"Important Requirements for Chartered Accountant or audit firm :\">Important Requirements for Chartered Accountant or audit firm :<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Non-Compliance_Risk\" title=\"Non-Compliance = Risk\">Non-Compliance = Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Next_Steps_for_Your_CA_Firm\" title=\"Next Steps for Your CA Firm:\">Next Steps for Your CA Firm:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#FAQs_on_Structured_Digital_Database_SDD\" title=\"FAQs on Structured Digital Database (SDD)\">FAQs on Structured Digital Database (SDD)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Q_1_Who_is_required_to_maintain_the_SDD\" title=\"Q 1. Who is required to maintain the SDD?\">Q 1. Who is required to maintain the SDD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Q_2_Are_intermediariesfiduciaries_required_to_maintain_SDD\" title=\"Q 2. Are intermediaries\/fiduciaries required to maintain SDD?\">Q 2. Are intermediaries\/fiduciaries required to maintain SDD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Q_3_What_is_the_trigger_point_for_inserting_a_record_into_the_SDD\" title=\"Q 3. What is the trigger point for inserting a record into the SDD?\">Q 3. What is the trigger point for inserting a record into the SDD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Q_4_What_qualifies_as_UPSI\" title=\"Q 4. What qualifies as UPSI?\">Q 4. What qualifies as UPSI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Q_5_When_is_UPSI_considered_to_be_%E2%80%9Cgerminated%E2%80%9D\" title=\"Q 5. When is UPSI considered to be &#8220;germinated&#8221;?\">Q 5. When is UPSI considered to be &#8220;germinated&#8221;?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Q_6_Should_internal_sharing_of_UPSI_also_be_recorded_in_the_SDD\" title=\"Q 6. Should internal sharing of UPSI also be recorded in the SDD?\">Q 6. Should internal sharing of UPSI also be recorded in the SDD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Q_7_What_are_the_technical_requirements_for_maintaining_the_SDD\" title=\"Q 7. What are the technical requirements for maintaining the SDD?\">Q 7. What are the technical requirements for maintaining the SDD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Q_8_Who_can_access_and_insert_UPSI_into_the_SDD\" title=\"Q 8. Who can access and insert UPSI into the SDD?\">Q 8. Who can access and insert UPSI into the SDD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Q_9_For_group_companies_should_each_maintain_its_own_SDD\" title=\"Q 9. For group companies, should each maintain its own SDD?\">Q 9. For group companies, should each maintain its own SDD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Q_10_What_if_PAN_of_the_person_is_not_available\" title=\"Q 10. What if PAN of the person is not available?\">Q 10. What if PAN of the person is not available?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Q_11_Can_external_software_be_used_to_maintain_the_SDD\" title=\"Q 11. Can external software be used to maintain the SDD?\">Q 11. Can external software be used to maintain the SDD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/mandatory-compliance-sdd-for-fiduciaries-cas-audit-firms\/#Q_12_Are_companies_under_CIRP_required_to_maintain_SDD\" title=\"Q 12. Are companies under CIRP required to maintain SDD?\">Q 12. Are companies under CIRP required to maintain SDD?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3 data-start=\"278\" data-end=\"380\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-27082\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-scaled.jpg\" alt=\"Income Tax Scrutiny\" width=\"2560\" height=\"1707\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-scaled.jpg 2560w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-300x200.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-1024x683.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-768x512.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-1536x1024.jpg 1536w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-2048x1365.jpg 2048w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/pexels-fauxels-3184418-800x533.jpg 800w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/h3>\n<h2 data-start=\"278\" data-end=\"380\"><span class=\"ez-toc-section\" id=\"Mandatory_Compliance_Structured_Digital_Database_SDD_for_Fiduciaries_CAs_Audit_Firms\"><\/span><span style=\"color: #000080;\"><strong data-start=\"285\" data-end=\"380\">Mandatory Compliance: Structured Digital Database (SDD) for Fiduciaries (CAs &amp; Audit Firms)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"278\" data-end=\"380\">As a chartered accountant or audit firm dealing with unpublished price-sensitive information such as financial data, earnings, or other confidential information of listed companies prior to public disclosure, you are classified as a fiduciary under the SEBI (Prohibition of Insider Trading) Regulations, 2015.<\/p>\n<p data-start=\"278\" data-end=\"380\"><span style=\"color: #000000;\">Based on the NSE Circular dated 28.10.2022\u2014Annexure II\u2014and the SEBI (Prohibition of Insider Trading) Regulations, 2015, here is a compliance summary tailored for chartered accountants and audit firms handling unpublished price-sensitive information.\u00a0<\/span><\/p>\n<p data-start=\"278\" data-end=\"380\">This fiduciary status imposes a mandatory obligation to maintain an internal Structured Digital Database (SDD) to ensure transparency and prevent misuse of UPSI. This is not merely a good practice\u2014it is a regulatory requirement. CA Firm handling financials or UPSI of listed or proposed-to-be-listed companies, you are considered a fiduciary under Regulation 3(2A) of the SEBI (PIT) Regulations, 2015. This brings a direct legal obligation to maintain a Structured Digital Database (SDD) internally.<\/p>\n<h3 data-start=\"715\" data-end=\"762\"><span class=\"ez-toc-section\" id=\"What_Must_Be_Maintained_in_the_SDD\"><\/span><span style=\"color: #000080;\"><strong data-start=\"723\" data-end=\"762\">What Must Be Maintained in the SDD?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"764\" data-end=\"910\">As per Regulation 9A(2)(d) and Schedule C of the PIT Regulations, your firm must internally maintain a digital database that captures:<\/p>\n<ul data-start=\"912\" data-end=\"1160\">\n<li data-start=\"912\" data-end=\"955\">\n<p data-start=\"914\" data-end=\"955\">Nature of UPSI received or shared<\/p>\n<\/li>\n<li data-start=\"956\" data-end=\"1048\">\n<p data-start=\"958\" data-end=\"1048\">Names, PAN or other identifiers of persons involved (shared with or received from)<\/p>\n<\/li>\n<li data-start=\"1049\" data-end=\"1109\">\n<p data-start=\"1051\" data-end=\"1109\">Date and time stamps of information access\/sharing<\/p>\n<\/li>\n<li data-start=\"1110\" data-end=\"1160\">\n<p data-start=\"1112\" data-end=\"1160\">Audit trails with non-tamperable entries<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"1167\" data-end=\"1201\"><span class=\"ez-toc-section\" id=\"Important_Requirements_for_Chartered_Accountant_or_audit_firm\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1174\" data-end=\"1201\">Important Requirements for Chartered Accountant or audit firm :<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"1202\" data-end=\"1603\">\n<li data-start=\"1202\" data-end=\"1268\">\n<p data-start=\"1204\" data-end=\"1268\">SDD cannot be outsourced \u2013 must be maintained internally<\/p>\n<\/li>\n<li data-start=\"1269\" data-end=\"1324\">\n<p data-start=\"1271\" data-end=\"1324\">Entries must be time-stamped and tamper-proof<\/p>\n<\/li>\n<li data-start=\"1325\" data-end=\"1422\">\n<p data-start=\"1327\" data-end=\"1422\">Any correction must be made via new entry referencing the old, not by altering past records<\/p>\n<\/li>\n<li data-start=\"1423\" data-end=\"1516\">\n<p data-start=\"1425\" data-end=\"1516\">Access must be limited to &#8220;need-to-know&#8221; individuals and identity must be auditable<\/p>\n<\/li>\n<li data-start=\"1517\" data-end=\"1603\">\n<p data-start=\"1519\" data-end=\"1603\">SDD is mandatory even for UPSI shared internally, not just with external parties<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"1610\" data-end=\"1642\"><span class=\"ez-toc-section\" id=\"Non-Compliance_Risk\"><\/span><span style=\"color: #000080;\"><strong data-start=\"1617\" data-end=\"1642\">Non-Compliance = Risk<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1643\" data-end=\"1822\">chartered accountant or audit firm Failure to maintain a valid SDD can result in penalties, regulatory scrutiny, and reputational damage\u2014affecting both the audit firm and the client (the listed entity). CA may use external software for maintaining SDD, provided it is installed and managed internally, ensuring data control, security, and traceability.<\/p>\n<h3 data-start=\"2024\" data-end=\"2059\"><span class=\"ez-toc-section\" id=\"Next_Steps_for_Your_CA_Firm\"><\/span><span style=\"color: #000080;\"><strong data-start=\"2030\" data-end=\"2059\">Next Steps for Your CA Firm:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol data-start=\"2060\" data-end=\"2276\">\n<li data-start=\"2060\" data-end=\"2102\">\n<p data-start=\"2063\" data-end=\"2102\">Identify team members handling UPSI<\/p>\n<\/li>\n<li data-start=\"2103\" data-end=\"2153\">\n<p data-start=\"2106\" data-end=\"2153\">Implement or upgrade an internal SDD system<\/p>\n<\/li>\n<li data-start=\"2154\" data-end=\"2210\">\n<p data-start=\"2157\" data-end=\"2210\">Train staff on SDD compliance and PIT obligations<\/p>\n<\/li>\n<li data-start=\"2211\" data-end=\"2276\">\n<p data-start=\"2214\" data-end=\"2276\">Conduct periodic reviews and internal audits for adherence<\/p>\n<\/li>\n<\/ol>\n<p data-start=\"1121\" data-end=\"1269\">Failure to maintain a compliant SDD can expose your firm and your clients to significant regulatory scrutiny and penalties under SEBI norms.<\/p>\n<p data-start=\"1271\" data-end=\"1370\">A chartered accountant or audit firm protects and safeguards his clients. Ensure CA SDD is active, secure, and compliant. If CA\u00a0 firm is not yet maintaining a structured digital database, we urge CA to implement one immediately to remain compliant and avoid regulatory consequences.<\/p>\n<p data-start=\"1271\" data-end=\"1370\">In summary, the<span style=\"color: #000080;\"> SDD must accurately record the nature<\/span>\u00a0of UPSI received or shared, Names, PANs or other identifiers of individuals with whom the information is shared or Date and time stamps, including audit trails of such sharing<\/p>\n<h2 data-start=\"237\" data-end=\"287\"><span class=\"ez-toc-section\" id=\"FAQs_on_Structured_Digital_Database_SDD\"><\/span><span style=\"color: #000080;\"><strong data-start=\"240\" data-end=\"285\">FAQs on Structured Digital Database (SDD)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 data-start=\"364\" data-end=\"441\"><span class=\"ez-toc-section\" id=\"Q_1_Who_is_required_to_maintain_the_SDD\"><\/span><span style=\"color: #000080;\"><strong data-start=\"368\" data-end=\"441\">Q 1. Who is required to maintain the SDD?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"443\" data-end=\"508\">Ans :\u00a0 As per Regulation 3(5) of the SEBI (PIT) Regulations, 2015: \u201cThe Board of Directors or head(s) of the organisation of every person required to handle Unpublished Price Sensitive Information (UPSI)\u201d is mandated to maintain an SDD.\u00a0This includes:<\/p>\n<ul data-start=\"697\" data-end=\"933\">\n<li data-start=\"697\" data-end=\"792\">\n<p data-start=\"699\" data-end=\"792\">Listed or proposed-to-be-listed companies (as per Regulation 2(1)(hb) of PIT Regulations)<\/p>\n<\/li>\n<li data-start=\"793\" data-end=\"933\">\n<p data-start=\"795\" data-end=\"933\">Intermediaries\/fiduciaries, as referred under the Explanation to Regulation 3(2A), who handle UPSI in the course of their business<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"940\" data-end=\"1007\"><span class=\"ez-toc-section\" id=\"Q_2_Are_intermediariesfiduciaries_required_to_maintain_SDD\"><\/span><span style=\"color: #000080;\">Q 2. Are intermediaries\/fiduciaries required to maintain SDD?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1009\" data-end=\"1089\">Ans :\u00a0 Yes. Intermediaries\/fiduciaries must maintain a separate internal SDD for<\/p>\n<ul data-start=\"1090\" data-end=\"1149\">\n<li data-start=\"1090\" data-end=\"1113\">\n<p data-start=\"1092\" data-end=\"1113\">UPSI shared with them<\/p>\n<\/li>\n<li data-start=\"1114\" data-end=\"1149\">\n<p data-start=\"1116\" data-end=\"1149\">UPSI they have shared with others<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1151\" data-end=\"1305\">This applies even for unlisted companies whose securities are proposed to be listed. (Ref: Regulation 9A(2)(d) &amp; Schedule C of SEBI PIT Regulations)<\/p>\n<h3 data-start=\"1312\" data-end=\"1385\"><span class=\"ez-toc-section\" id=\"Q_3_What_is_the_trigger_point_for_inserting_a_record_into_the_SDD\"><\/span><span style=\"color: #000080;\">Q 3. What is the trigger point for inserting a record into the SDD?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1387\" data-end=\"1498\">Ans :\u00a0 The sharing of UPSI, internally or externally, triggers the requirement to record the event in the SDD.<\/p>\n<h3 data-start=\"1505\" data-end=\"1539\"><span class=\"ez-toc-section\" id=\"Q_4_What_qualifies_as_UPSI\"><\/span><span style=\"color: #000080;\">Q 4. What qualifies as UPSI?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1541\" data-end=\"1616\">Ans :\u00a0 UPSI is defined under Regulation 2(1)(n). It includes information that:<\/p>\n<ul data-start=\"1617\" data-end=\"1717\">\n<li data-start=\"1617\" data-end=\"1648\">\n<p data-start=\"1619\" data-end=\"1648\">Is not publicly available<\/p>\n<\/li>\n<li data-start=\"1649\" data-end=\"1717\">\n<p data-start=\"1651\" data-end=\"1717\">Would materially affect the price of securities if made public<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1719\" data-end=\"1805\">Examples include financial results, mergers, acquisitions, and key management changes.<\/p>\n<h3 data-start=\"1812\" data-end=\"1866\"><span class=\"ez-toc-section\" id=\"Q_5_When_is_UPSI_considered_to_be_%E2%80%9Cgerminated%E2%80%9D\"><\/span><span style=\"color: #000080;\">Q 5. When is UPSI considered to be &#8220;germinated&#8221;?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1868\" data-end=\"1892\">Ans : UPSI is germinated when:<\/p>\n<ul data-start=\"1893\" data-end=\"2117\">\n<li data-start=\"1893\" data-end=\"1952\">\n<p data-start=\"1895\" data-end=\"1952\">It starts taking shape as price-sensitive information<\/p>\n<\/li>\n<li data-start=\"1953\" data-end=\"2032\">\n<p data-start=\"1955\" data-end=\"2032\">The probability of the event happening is greater than not happening, and<\/p>\n<\/li>\n<li data-start=\"2033\" data-end=\"2117\">\n<p data-start=\"2035\" data-end=\"2117\">The event is likely to materially affect the securities\u2019 price upon disclosure<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"2124\" data-end=\"2195\"><span class=\"ez-toc-section\" id=\"Q_6_Should_internal_sharing_of_UPSI_also_be_recorded_in_the_SDD\"><\/span><span style=\"color: #000080;\">Q 6. Should internal sharing of UPSI also be recorded in the SDD?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"2197\" data-end=\"2304\">Ans :\u00a0 Yes. Whether UPSI is shared within or outside the organization, it must be recorded in the SDD. <em data-start=\"2307\" data-end=\"2465\">Example: While finalizing financial results, sharing UPSI with accounts personnel or auditors must be recorded with their names and identifiers (e.g., PAN).\u00a0<\/em>Audit firms that receive UPSI must also maintain their own SDD.<\/p>\n<h3 data-start=\"2541\" data-end=\"2612\"><span class=\"ez-toc-section\" id=\"Q_7_What_are_the_technical_requirements_for_maintaining_the_SDD\"><\/span><span style=\"color: #000080;\">Q 7. What are the technical requirements for maintaining the SDD?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans :<\/p>\n<ul data-start=\"2614\" data-end=\"2882\">\n<li data-start=\"2614\" data-end=\"2655\">\n<p data-start=\"2616\" data-end=\"2655\">The database must not be outsourced<\/p>\n<\/li>\n<li data-start=\"2656\" data-end=\"2742\">\n<p data-start=\"2658\" data-end=\"2742\">It must have adequate internal controls, time stamping, and audit trails<\/p>\n<\/li>\n<li data-start=\"2743\" data-end=\"2792\">\n<p data-start=\"2745\" data-end=\"2792\">Once an entry is made, it cannot be altered<\/p>\n<\/li>\n<li data-start=\"2793\" data-end=\"2882\">\n<p data-start=\"2795\" data-end=\"2882\">Any corrections must be made via new entries referencing the original, with reasons<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"2889\" data-end=\"2944\"><span class=\"ez-toc-section\" id=\"Q_8_Who_can_access_and_insert_UPSI_into_the_SDD\"><\/span><span style=\"color: #000080;\">Q 8. Who can access and insert UPSI into the SDD?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans :<\/p>\n<ul data-start=\"2946\" data-end=\"3161\">\n<li data-start=\"2946\" data-end=\"3039\">\n<p data-start=\"2948\" data-end=\"3039\">The responsibility lies with the Board of Directors or the Head of the Organization<\/p>\n<\/li>\n<li data-start=\"3040\" data-end=\"3094\">\n<p data-start=\"3042\" data-end=\"3094\">Access must be granted on a \u2018need-to-know\u2019 basis<\/p>\n<\/li>\n<li data-start=\"3095\" data-end=\"3161\">\n<p data-start=\"3097\" data-end=\"3161\">Identity of every user must be established and audit-trailed<\/p>\n<\/li>\n<\/ul>\n<h3 data-start=\"3168\" data-end=\"3233\"><span class=\"ez-toc-section\" id=\"Q_9_For_group_companies_should_each_maintain_its_own_SDD\"><\/span><span style=\"color: #000080;\">Q 9. For group companies, should each maintain its own SDD?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"3235\" data-end=\"3344\">Ans :\u00a0 Yes. Each company within a group must maintain a separate, independent SDD, as per Regulation 3(5).<\/p>\n<h3 data-start=\"3351\" data-end=\"3406\"><span class=\"ez-toc-section\" id=\"Q_10_What_if_PAN_of_the_person_is_not_available\"><\/span><span style=\"color: #000080;\">Q 10. What if PAN of the person is not available?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"3408\" data-end=\"3551\">Ans :\u00a0 Capture the PAN wherever available. If not, use any other valid identifier (like Aadhaar, Passport No., etc.) to record the identity.<\/p>\n<h3 data-start=\"3558\" data-end=\"3620\"><span class=\"ez-toc-section\" id=\"Q_11_Can_external_software_be_used_to_maintain_the_SDD\"><\/span><span style=\"color: #000080;\">Q 11. Can external software be used to maintain the SDD?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"3622\" data-end=\"3767\">Ans :\u00a0 Yes. You may purchase or license external software, but the SDD must be maintained internally (within the control of the fiduciary\/entity).<\/p>\n<h3 data-start=\"3774\" data-end=\"3878\"><span class=\"ez-toc-section\" id=\"Q_12_Are_companies_under_CIRP_required_to_maintain_SDD\"><\/span><span style=\"color: #000080;\">Q 12. Are companies under CIRP required to maintain SDD?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"3880\" data-end=\"4061\">Ans : Yes. Resolution Professionals must ensure compliance with all applicable laws, including SEBI PIT Regulations, as per IBBI Circular No. IP\/002\/2018 dated January 03, 2018.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mandatory Compliance: Structured Digital Database (SDD) for Fiduciaries (CAs &amp; Audit Firms) As a chartered accountant or audit firm dealing with unpublished price-sensitive information such as financial data, earnings, or other confidential information of listed companies prior to public disclosure, you are classified as a fiduciary under the SEBI (Prohibition of Insider Trading) Regulations, 2015. &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10255],"tags":[10272],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29504"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=29504"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29504\/revisions"}],"predecessor-version":[{"id":31217,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29504\/revisions\/31217"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}