SEBI to review insider trading norms through a committee
Market regulator Securities and Exchange Board of India (SEBI) has formed a panel under the chairmanship of former chief justice of Karnataka High Court Justice N. K. Sodhi to review insider trading norms to curb the menace of insider trading.
Why this move?
The SEBI (Prohibition of Insider Trading) Regulations were introduced in 1992 to deter the practice of insider trading in the securities of listed companies. Since then, several amendments to the Regulations and judicial paradigm through case laws have also evolved in India. It is necessary to incorporate these changes to ensure that the regulatory framework dealing with insider trading in India is further bolstered.
What is Insider Trading?