Prohibition of Insider Trading Policy

INTRODUCTION:

This Code of Conduct has been made pursuant to Regulation 8 and 9 of the SEBI (Prohibition of Insider Trading) Regulations, 2015 (herein referred as Regulations) as amended and may be modified by the Board of Directors of the Company from time to time.

The Board of Directors of the Company has adopted this “Prohibition of Insider Trading Policy” (the “Policy”) to comply with the SEBI (Prohibition of Insider Trading) Regulations, 2015 (“SEBI Regulations”) as amended from time to time.

This policy shall be applicable to all Insiders (as defined herein) of the Company including designated persons and immediate relatives of designated persons as defined in this policy. The SEBI Regulations prohibit an Insider from Trading in the securities of a company listed on any stock exchange when in possession of any unpublished price sensitive information.

The Company endeavors to preserve the confidentiality of Un-published Sensitive information (UPSI) and to prevent misuse of such information. The Company is committed to transparency and fairness in dealing with all the stakeholders and in ensuring adherence to all laws and regulations.

“Unpublished price sensitive information” means any information, relating to a company or its securities, directly or indirectly, that is not generally available which upon becoming generally available, is likely to materially affect the price of the securities and shall, ordinarily including but not restricted to, information relating to the following:–

• financialresults;
• dividends;
• change in capitalstructure;
• mergers, de-mergers, acquisitions, delistings, disposals and expansion of business and such other transactions
• changes in key managerial personnel.

It is intended that information relating to a company or securities, that is not generally available would be unpublished price sensitive information if it is likely to materially affect the price upon coming into the public domain. The types of matters that would ordinarily give rise to unpublished price sensitive information have been listed above to give illustrative guidance of unpublished price sensitive information.

“Generally available information” is defined, it is intended that anyone in possession of or having access to unpublished price sensitive information should be considered an “insider” regardless of how one came in possession of or had access to such information. Various circumstances are provided for such a person to demonstrate that he has not indulged in insider trading. Therefore, this definition is intended to bring within its reach any person who is in receipt of or has access to unpublished price sensitive information. The onus of showing that a certain person was in possession of or had access to unpublished price sensitive information at the time of trading would, therefore, be on the person leveling the charge after which the person who has traded when in possession of or having access to unpublished price sensitive information may demonstrate that he was not in such possession or that he has not traded or or he could not access or that his trading when in possession of such information was squarely covered by the exonerating circumstances.

The SEBI Regulations prohibit the communication of UPSI to any person except in compliance with applicable law. Further, procuring any person to Trade in the securities of any company when in possession UPSI is also prohibited under the SEBI Regulations and the securities laws. Violations of the SEBI Regulations and the securities laws subject Insiders to severe penalties including disgorgement proceedings, fines and imprisonment as per the applicable law.

1. Rules
   The rules shall be called ‘Rules for Trading in the securities of Power & Instrumentation (Gujarat) Limitedby an Insider’ (“Rules”). These Rules shall come into force with immediate effect.

2. Definitions

   • “Act” shall mean the Securities and Exchange Board of India Act, 1992 (15 of1992).
   • ‘Audit Committee’ shall mean Committee of the Board of the Company constituted pursuant to Section 177 of the Companies Act, 2013 read with Regulation 18 of the SEBI (Listing Obligations and Disclosure Requirements)Regulations,2015.
   • ‘Board’ shall mean the Board of Directors of Power & Instrumentation (Gujarat) Limited.
   • ‘Company’ means Power & Instrumentation ( Gujarat) Limited.

   • Compliance Officer
     

     “Compliance Officer” means the General Counsel and Chief Compliance Officer of the Company or the Company Secretary who is financially literate and is capable of appreciating requirements for legal and regulatory compliance under the Regulations and who shall be responsible for compliance of policies, procedures, maintenance of records, monitoring adherence to the rules for the preservation of unpublished price sensitive information, monitoring of trades and implementation of the codes specified under the SEBI Regulations under the overall supervision of the Board.

   • ConnectedPerson
     

     “Connected Person,” includes–

     1. A director of the Company;
     2. A Key Managerial Personnel of the Company;
     3. An Officer of the Company;
     4. Any person who is or has been in a contractual, fiduciary or employment relationship at any time in the six month period prior to the date of determining whether that person, as a result of such relationship, was, directly or indirectly, allowed access to UPSI or reasonably expected to be allowed accesstoUPSI;
     5. Any person who is or has been in frequent communication with an Officer of the Company at anytime in the six-month period prior to the date of determining whether that person, as a result of such frequent communication, was, directly or indirectly, allowed access to UPSI or reasonably expected to be allowed access toUPSI;
     6. An employee of the Company who has access to UPSI or is reasonably expected to have access to UPSI; and
     7. Any person who has a professional or business relationship with the Company and that relationship directly or indirectly, allows access to UPSI or is reasonably expected to allow access toUPSI;

        The persons enumerated below shall be deemed to be Connected Persons if such person has access to UPSI or is reasonably expected to have access to UPSI-

        • An Immediate Relative of ConnectedPersons;
        • A holding company, associate company or subsidiarycompany;
        • An intermediary as specified in section12 of the SEBI Act or an employee or Directorthereof;
        • An investment company, trustee company, asset management company or an employee or director thereof;
        • An official of a stock exchange or of clearing houseorcorporation;
        • A member of the board of trustees of a mutual fund, a member of the board of directors of the asset management company of a mutual fund or in each case, an employeethereof;
        • A member of the board of directors or an employee, of a public financial institution as defined in section2

        • (72) of the Companies Act, 2013;

        • An official or an employee of a self-regulatory organization recognized or authorized by theSEBI;
        • A banker of the Company;and
        • A concern, firm, trust, Hindu undivided family, company or association of persons wherein a director of the Company or his Immediate Relative or banker of the Company, has more than ten percent of the holding orinterest.

   • Contratrade Person
     

     “Connected Person,” includes–

     • A director of theCompany;
     • A Key Managerial Personnel of theCompany;
     • An Officer of theCompany;
     • Any person who is or has been in a contractual, fiduciary or employment relationship at any time in the six month period prior to the date of determining whether that person, as a result of such relationship, was, directly or indirectly, allowed access to UPSI or reasonably expected to be allowed accesstoUPSI;
     • An employee of the Company who has access to UPSI or is reasonably expected to have access to UPSI; and
     • Any person who has a professional or business relationship with the Company and that relationship directly or indirectly, allows access to UPSI or is reasonably expected to allow access toUPSI;

       The persons enumerated below shall be deemed to be Connected Persons if such person has access to UPSI or is reasonably expected to have access to UPSI-

     • An Immediate Relative of ConnectedPersons;
     • A holding company, associate company or subsidiarycompany;
     • An intermediary as specified in section12 of the SEBI Act or an employee or Directorthereof;
     • An investment company, trustee company, asset management company or an employee or director thereof;
     • An official of a stock exchange or of clearing houseorcorporation;
     • A member of the board of trustees of a mutual fund, a member of the board of directors of the asset management company of a mutual fund or in each case, an employeethereof;
     • A member of the board of directors or an employee, of a public financial institution as defined in section2
     • An official or an employee of a self-regulatory organization recognized or authorized by theSEBI;
     • A banker of the Company;and
     • A concern, firm, trust, Hindu undivided family, company or association of persons wherein a director of the Company or his Immediate Relative or banker of the Company, has more than ten percent of the holding orinterest.

   • Contratrade
     

     “Contra Trade’’ means a trade or transaction which involves buying or selling any number of shares of the Company and within 6 months trading or transacting in an opposite transaction involving sell or buy following the priortransaction.”

   • DesignatedPerson
     

     The term “Designated Person” shall consist of:

     • Promoters of theCompany
     • Directors of the Company and itssubsidiaries;
     • All employees in the Finance and Accounts Department, Corporate Planning Department, Legal Department, Enterprise Risk Management Department, Corporate Strategy, Information Security and any other departments of the company and its material subsidiaries, if any on the basis of their functional role or access to unpublished price sensitiveinformation
     • Managing Director and employees upto two levels below Managing Director of the Company and material subsidiaries.
     • Executive Secretaries of Directors and Executive Officers of the Company, any support staff of the Company, such as IT staff or secretarial staff who have access to unpublished price sensitiveinformation;
     • Immediate Relatives of persons specified in (I) to (V)above
     • Any other Person designated by the Company on the basis of their functional role and such function would provide access to UPSI;

   • Director
     

     “Director” shall have the meaning assigned to it under the Companies Act, 2013.

   • ImmediateRelative
     

     “Immediate relative” means a spouse of a person, and includes parent, sibling, and child of such person or of the spouse, any of whom is either dependent financially on such person, or consults such person in taking decisions relating to trading in securities.

   • Insider
     

     An “Insider” means any person who is:

     • a Connected Personor
     • in possession of or having access toUPSI.

   • Key ManagerialPersonnel
     

     “Key Managerial Personnel” shall have the meaning assigned to it under the Companies Act, 2013.

   • ‘Leak of UPSI’ shall refer to such act/circumstance(s) by virtue of which an UPSI is made available or becomes available, by any means or mode to any person, association, body, firm, agency, society, entity or to a group thereof, whether registered or otherwise before its official publication or announcement or formal circulation in public domain and which shall also include any purported attemptthereof.

     Explanation: It covers the instances where the UPSI has been shared by a person to any person, association, body, firm, agency, society, entity or to a group thereof except in compliance with applicable law.

   • “Material financial relationship” shall mean a relationship in which one person is a recipient of any kind of payment such as by way of a loan or gift from a designated person during the immediately preceding twelve months, equivalent to at least 25% of the annual income of such designated person, but shall exclude relationships in which the payment is based on arm’s lengthtransactions.

   • Officer
     

     “Officer” shall have the meaning assigned to it under the Companies Act, 2013.

   • Promoter and PromoterGroup
     

     “Promoter” shall have the meaning assigned to it under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 or any modification thereof.

     “Promoter Group” shall have the meaning assigned to it under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 or any modificationthereof.

   • Securities
     

     “Securities” shall have the meaning assigned to it under the Securities Contracts (Regulations) Act, 1956 or any modification thereof except units of a mutual fund.

   • Trading
     

     “Trading” means and includes subscribing, buying, selling, dealing, or agreeing to subscribe, buy, sell, pledge, unpledge, deal in the Company’s securities either directly or through portfolio management services, and “trade” shall be construed accordingly.

   • Legitimatepurpose
     

     “Legitimate purpose” shall include sharing of unpublished price sensitive information in the ordinary course of business by an insider with partners, collaborators, lenders, customers, suppliers, merchant bankers, legal advisors, auditors, insolvency professionals or other advisors or consultants, provided that such sharing has not been carried out to evade or circumvent the prohibitions of theseregulations

     Words and expressions used and not defined in these Rules but defined in the Securities and Exchange Board of India Act, 1992, the Securities Contracts (Regulation) Act, 1956, the Depositories Act, 1996 or the Companies Act, 2013 and rules and regulations made there under shall have the meanings respectively assigned to them in those legislations.

      

3. Prohibition on communicating or procuringUPSI
   

   1. An Insider shall not–

      • communicate, provide, or allow access to any UPSI, relating to the Company or its securities, to any person including other Insiders, except to the extent allowed by these Rules or SEBI Regulations;or
      • procure from or cause the communication by an Insider of UPSI, relating to the Company or itssecurities.

   Provided that nothing contained above shall be applicable when an UPSI is communicated, provided, allowed access to or procured:

   • • in furtherance of legitimate purposes, performance of duties or discharge of legal obligations pursuant to appropriate notice, confidentiality and non-disclosure agreements being executed;or
     • in the event the Board of Directors directs or causes the public disclosure of UPSI in the best interest of the Company;or
     • within a group of persons if such persons have been identified and secluded within a “Chinese wall” or information barrier by the Compliance Officer from the rest of the Company for a particular purpose or for a specified period of time in furtherance of legitimate purposes, performance of duties or discharge of legal obligations, and are subjected to, among other conditions, additional confidentiality obligations, information barriers designed to prevent exchanges of UPSI outside the “Chinese wall”, and the execution of an undertaking by such persons to abstain and/or forego Trading during such seclusion or till the UPSI no longer constitutes UPSI and has become generallyavailable.
4. Prohibition on InsiderTrading
   

   An Insider shall not, directly or indirectly,–

   • TradeinsecuritiesoftheCompanythatarelistedorproposedtobelistedwheninpossession ofUPSI;
   • Trade in securities of the Company except when the Trading Window is open and the Insider is not in possession ofUPSI.
   • Provideadvise/tipstoanythirdpartyontradinginCompany’ssecuritieswhileinpossessionofUPSIand

     An insider who has ceased to be associated with the Company shall not, for a period of six months from date of such cessation, directly or indirectly trade in the Company’s Securities while in possession of UPSI.

     Trading in Securities of other companies. No Insider may, while in possession of unpublished price sensitive information about any other public company gained in the course of employment with the Company, (a) trade in the securities of the other public company, (b) “tip” or disclose such material non-public information concerning that company to anyone, or (c) give trading advice of any kind to anyone concerning the other public company.

     NoInsidermaytakepositionsinderivativetransactionsinthesecuritiesoftheCompanyatanytime. The restriction in 4(i) above may not applyto:

     1. A transaction that is an off-market inter-se transfer between Insiders who were in possession of the same UPSI without being in breach of these Rules and both parties had made a conscious and informed trade decision;and
     2. TradespursuanttoaTradingPlansetupinaccordancewith

        When a person has traded in securities while in possession of unpublished price sensitive information, his trades would be presumed to have been motivated by the knowledge and awareness of such information in his possession.

5. TradingWindow
   • The Compliance Officer shall notify a ‘trading window’ during which the Designated Persons may Trade in the Company’s securities after securing pre-clearance from the Compliance Officer in accordance with theseRules.Thecompetentauthorityforpre-clearingtheTradeofComplianceOfficershall beBoard.
   • Designated Persons shall not Trade in the Company’s securities when the trading window isclosed.
   • The trading window shall generally be closed for all Insiders between the sixteenth day prior to the last day of any financial period for which results are required to be announced by the Company and the second trading day after disclosure of such financialresults.
   • Additionally, the trading window shall be closed in particular for a Designated Person or class of Designated Persons when the Compliance Officer determines that a Designated Person or class of Designated Persons can reasonably be expected to have possession of UPSI, for such periods as determined by the Compliance Officer. Designated Person or class of Designated Persons will receive a notification on such special blackoutperiods.
   • The trading window may be re-opened after closure, not earlier than 48 hours after the UPSI in question becomes generally
   • The trading window restriction shall not apply for belowcases;
     • off-market, inter-se transfer between insiders who were in possession of the same UPSI without violating the policy and both parties had made a conscious and informed tradedecision.
     • transaction carried out through the block deal window mechanism between persons who were in possession of the UPSI without violating the policy and both parties had made a conscious and informed tradedecision
     • transaction carried out pursuant to a statutory or regulatory obligation to carry out a bona fide transaction.
     • Transaction undertaken pursuant to the exercise of stock options in respect of which the exercise price was pre-determined in compliance with applicableregulations.
     • Trades executed asper the trading plan setup in accordance with the policy
     • Pledge of shares for a bona fide purpose such as raising of funds, subject to pre-clearance by the complianceofficer.
     • Transactions undertaken in accordance to respective regulations made by SEBI, such as acquisition by conversion of warrants or debentures, subscribing to rights issue, further public issue, preferential allotment or tendering of shares in a buy-back offer, open offer, delistingoffer.
6. Pre-clearance of Trading
   • All Designated Persons who intend to trade in the securities of Power & Instrumentation (Gujarat) Limited (either in their own name or in any immediate relative’s name) i.e. buy or sell securities during the trading window open period and if the value of the securities likely to be traded, whether in one transaction or a series of transactions over any calendar quarter, aggregates to a traded value in excess of Rs. 5,00,000/- (Rupees Five Lakhs Only), should pre-clear the transactions by making an application in the format set out in Annexure 1 to the Compliance Officer indicating the estimated number of units of securities that the designated person or immediate relative(s) intends to trade and such other details as specified in the form and also declare that the applicant is not in possession of unpublished price sensitive information as per Annexure2.
   • The Compliance Officer shall not approve any proposed Trade by Designated Person if the Compliance Officer determines that such Designated Person is in possession of UPSI even though the trading window isopen.
   • The Compliance Officer may, after being satisfied that the application and undertaking are true and accurate, approve Trading by a Designated Person, on the condition that the Trade so approved shall be executed within seven trading days following the date of
   • The Board of directors of the Company shall be the approving authority for approving the pre-clearance application of Compliance Officer and Managing Director of theCompany.
   • The Designated Person shall, within two Working days of the execution of the Trade, submit the details of such Trade to the Compliance Officer as per Annexure 3. In case the transaction is not undertaken, a reporttothateffectshallbefiledinthesaidform.
   • If the pre-cleared Trade is not executed within seven trading days after the approval is given, the Designated Person must secure pre-clearance of the transactionagain.
   • Pre-clearance of trades shall not be required for a trade executed as per an approved tradingplan.
   • A Designated Person who Trades in securities of the Company without complying with the pre-clearance procedure as envisaged in these Rules or gives false undertakings and/or makes misrepresentations in the undertakings executed by him/her while complying with the pre-clearance procedure shall be subjected to the penalties as envisaged in theseRules.
7. Additional trading restrictions on DesignatedPersons
   • No Insiders shall enter into derivative transactions in respect of the securities of the
   • All Designated Persons who Trade in the securities of the company shall not enter into a contra trade during the next six months following the prior transaction. In case of any contra trade be executed, inadvertently or otherwise, in violation of such a restriction, the profits from such trade shall be liable to be disgorged for remittance to SEBI for credit to the Investor Education and Protection Fund administered bySEBI.
   • The above restriction on contra trade shall not apply in case of exercise/sale of ESOP shares provided the Designated Persons do not possess UPSI and the sale is executed when the trading window is open and after obtaining pre-clearance.
8. TradingPlan
   • A Designated Person shall be entitled to formulate a Trading Plan that complies with the SEBI Regulations (a “Trading Plan”) and present it to the Compliance Officer for approval and public disclosure. The trading plan may be executed only after the plan is approved by the Compliance officer and disclosed to the stock exchanges on which the securities of the Company arelisted.
   • Designated person shall not exercise any influence over the amount of Securities to be traded, the price at which they are to be traded, or the date of the trade. Designated person may delegate discretionary authority to his/her broker, but in no event Designated person may consult with the broker regarding executing transactions, or otherwise disclose information to the broker concerning the Company that might influence the execution of transactions, under the Trading Plan after itcommences.
   • The Trading Plan once approved shall be irrevocable and the Designated Person shall mandatorily have to implement the plan, without being entitled to either deviate from it or to execute any trade in the securities outside the scope of the Trading Plan. However, the implementation of the Trading Plan shall not be commenced, if at the time of formulation of the plan, the Designated Person is in possession of UPSI and the said information has not become generally available at the time of the commencement of implementation. The commencement of the Trading Plan shall be deferred until such UPSI becomes generally availableinformation.
9. Penalty for Insider Trading
   • An Insider who acts in contravention of these Rules shall be liable to have his services or relationship with the Company, as the case maybe, terminated.
   • Directors, Officers and employees of the Company who violate these rules shall be subject to disciplinary action by the Company, which may include wage freeze, suspension, recovery, claw back etc. and ineligibility for future participation in the Company’s stock option plans ortermination.
   • The SEBI or any other appropriate regulatory authority may also be informed of the violation of these Rules so that appropriate action may betaken.
10. Disclosurerequirements
    • InitialDisclosure

      Every person on appointment as key managerial personnel or a director of the company or upon becoming a promoter or member of the promoter group shall disclose his holding of securities of the company as on the date of appointment or becoming a promoter, to the company within seven days of such appointment or becoming a promoter, as per Form A set out in Annexure- 4.

      • Designated persons shall be required to disclose names and Permanent Account Number or any other identifier authorized by law of the following persons to the company on an annual basis and as and when the informationchanges:
        • immediaterelatives
        • persons with whom such designated person(s) shares a material financialrelationship
        • Phone, mobile and cell numbers which are used bythem.

          In addition, the names of educational institutions from which designated persons have graduated and names of their past employers shall also be disclosed on a one time basis.

          The term “material financial relationship” shall mean a relationship in which one person is a recipient of any kind of payment such as by way of a loan or gift from a designated person] during the immediately preceding twelve months, equivalent to at least 25% of the annual income of such designated person but shall exclude relationships in which the payment is based on arm’s length transactions.

      • Every company shall notify the particulars of such trading to the stock exchange on which the securities are listed within two trading days of receipt of the disclosure or from becoming aware of such information.

        Explanation. — It is clarified for the avoidance of doubts that the disclosure of the incremental transactions after any disclosure under this sub-regulation, shall be made when the transactions effected after the prior disclosure cross the threshold specified in clause (a) of sub-regulation (2).

      • Disclosure to the StockExchange:

        The Compliance Officer shall notify the stock exchanges, particulars of the Trades, within two trading days of the receipt of the Continual Disclosure or from becoming aware of suchinformation.

      • Disclosures by other ConnectedPersons.

        The Compliance Officer may, require any other Connected Person to disclose the holdings and trading in securities of the Company as per Form C set out in Annexure 6 at such frequency as he may determine.

      • All Designated Persons must make an annual disclosure of the number of Securities of the company held as on 31st March each year by them including details of purchase/sale of Securities of the Company during the financial year to the Compliance Officer. This disclosure must be made within 30 (thirty) days from the close of each financialyear.
11. Structured Digital Database(SDD)
    

    The Board shall ensure that a structured digital database is maintained containing the names of such persons or entities as the case may be with whom information is shared under SEBI (PIT) Regulation along with the Permanent Account Number or any other identifier authorized by law where Permanent Account Number is not available. Such databases shall be maintained with adequate internal controls and checks such as time stamping and audit trails to ensure non-tampering of the database. Even if the UPSI is shared only within the Company, then also Company is required to maintain this structured digital database. If Nominee Directors shares UPSI for legitimate purpose with the Bank/FIs, it would be considered as communication of UPSI. Accordingly, the same would be recorded in the SDD of the Company

12. Miscellaneous
    1. The Board of Directors shall be empowered to amend, modify, and interpret these Rules and such Rules shall be effective from such date that the Board may notify in thisbehalf.
    2. The Compliance Officer shall provide the Audit Committee of the Board, on a quarterly basis, all the details of Trading in securities by the Designated Persons including any violations of theRules.
    3. The Compliance Officer shallmaintain
       1. an updated list of DesignatedPersons,
       2. records of disclosures and pre-clearance applications and undertakings for a period of five yearsand
       3. a confidential list of any ‘restricted securities’ to which the Compliance Officer may require Designated Persons to seek pre-clearance before Trading in such ‘restricted securities’.
    4. The Company shall require all Connected Persons to formulate and adhere to a code of conduct to achieve

       compliance with these Rules. In case such persons observe that there has been a violation of these Rules, then they shall inform the Board of Directors of the Companypromptly.

    5. Any suspected violation of leak of unpublished price sensitive information or violation of this policy can be reported under whistleblowerpolicy.

AMENDMENT

The Company is committed to continuously reviewing and updating its policies, and the Company therefore reserves the right to amend this Policy at any time, for any reason, subject to applicable law.

These Rules are subject to the applicable prevailing law in relation to prevention of Insider Trading and if there is any in consistency between any of the provisions of these Rules and applicable law, the applicable law shall prevail.