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Oct 22, 2021 · To regulate the unfair trade practices in the securities market, SEBI (Insider Trading) Regulations, 1992 was enacted. The regulations were amended in the year 2002. Insider trading refers to the trading of unpublished price-sensitive information behind the corporations in order to gain unfairly or avoid loss.
Jul 7, 2021 · The Insider Trading Regulations provides the following restrictions on any communication or procurement of UPSI and trading: The Regulations restricts/prohibits an insider to communicate, provide or allow access to any UPSI which is related to a company or securities listed, to any person including other insiders.
Feb 16, 2024 · According to Regulation 5, every insider should prepare an advance trading plan and present it before the Compliance Officer for his consent and public reveal. These can be the salient features of such trading plans:-. The lock-in period here shall be for a minimum of 12 months. An existing plan shall not overlap.
Past Instances of Insider Trading in India. Even after several insider trading regulations by SEBI, convictions have been few and far between. For instance, the regulatory body investigated as many as 70 instances of alleged insider trading but completed only 19 probes. Between FY15 and FY19, SEBI took up more than 140 of such cases.
- The trading plan refers to predetermined trading initiatives that an insider or UPSI can formulate to trade legally. This is used so that even such...
- UPSI refers to Unpublished Price Sensitive Information. This is any sensitive, non-public information about a firm that can greatly impact the perf...
- Only the Board of Directors of a firm can modify or change the code of insider trading if they deem it fit to alter the current code.
- The Compliance Officer will establish a trading period, known as the "Trading Window," during which the company's securities may be traded. Typical...
- Designated Individuals and their next of kin are banned from contacting directly or indirectly with any person or granting any access at any time,...
The term 'Insider Trading' can be defined as the illegal use of non-public information derived from a person associated with the company to profit /gain by purchasing/selling listed securities on the share market. The seriousness of the crimes relating to Insider Trading cannot be overlooked. Such crimes create a huge problem for the regulating ...
4 days ago · SEBI's recent amendments to insider trading norms include reducing the trading commencement period to 120 days, removing the mandatory 12-month trading requirement, setting clear price limits for trades, allowing trade splitting within specified durations, and requiring prompt compliance officer approval, all aimed at enhancing flexibility, transparency, and compliance in trading practices.
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Aug 5, 2021 · Securities and Exchange Board of India is made for protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto
