Last Monday we shared Part 1 of this spotlight on SEDAR and SEDI, two important Canadian securities databases. Today we bring you Part 2, in which we’ll focus on SEDI: the System for Electronic Disclosure by Insiders.
Some key facts about SEDI:
- SEDI facilitates the filing and public dissemination of insider trading reports in electronic format as required by various provincial securities rules and regulations. This system replaced the paper-based reporting system in 2003; however, a search for historical reports may be made at the pertinent provincial security commission.
- The importance of insider trading reports for investors provides transparency to the market about the trading activity of directors, senior officers, significant shareholders and reporting issuers. It deters insider trading on confidential information, since insiders know that they will be required to disclose their trades.
- An insider is often a director or an officer of an issuer. An issuer is a person that has security outstanding, issues securities or proposes to issue a security.
- Insider public searches include weekly summary of insider trading reports, insider transaction details of all individual transactions filed by insiders. Searches are often conducted on an issuer to determine the identity of the insiders and their trading history.
Need a SEDI search done? Dye & Durham’s expert searchers would be pleased to assist you. Please contact us at 1-800-661-1811 (then press 4 for corporate services) for more information. We look forward to assisting you with any of your SEDI or SEDAR search needs.
(This post is based on an article by Debbie Larson, Dye & Durham’s Director of Search and Registration Services. It first appeared in the Winter 2014/15 issue of the BC Paralegal Association’s magazine, Paralegal Press.)