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CGB Author message

Dear all,

Hope all are doing well. Many of you have written your exams and some of you may be preparing for exams. All the best for your exams and bright future. May all come up in flying colors. 

I was not able to update the blog regularly as I was busy with my work and some preoccupations. Now I am back. From this week onwards I will be updating my blog in the best possible manner. Dont forget to visit my blog regularly and feel free to put your valuable comments/feedback. You people are my energy and support and I hope the blog will be able to cater the needs of all my readers including future professionals.

Thank you,

Victor J. Uruvath
Founder & Author


SEBI (Prohibition of Insider Trading) Regulations 2015 came into effect

SEBI had vide its notification dtd 15/01/2015 published the SEBI (Prohibition of Insider Trading) Regulations 2015 which would replace the existing two decade old SEBI (Prohibition of Insider Trading) Regulations 1992.  The new regulations was announced to come into effect from May 2015 onwards. As announced, the regulations came into effect. The new regulations have widened the definitions of “Insider”, “ Unpublished Price Sensitive Information (UPSI)” and “Connected Person”.

As per the new regulations, 

"Insider" means any person who is:

i) a connected person; or

ii) in possession of or having access to unpublished price sensitive information;

The new regulations views an ‘insider’ as anyone in possession of or having access to unpublished price sensitive information should be considered an “insider” regardless of how one came in possession of or had access to such information.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 Therefore, this definition is intended to bring within its reach any person who is in receipt of or has access to unpublished price sensitive information. The onus of showing that a certain person was in possession of or had access to unpublished price sensitive information at the time of trading would, therefore, be on the person leveling the charge after which the person who has traded when in possession of or having access to unpublished price sensitive information may demonstrate that he was not in such possession or that he has not traded or or he could not access or that his trading when in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 regulations also provides for appointment of a “Compliance Officer” by every listed company, market intermediary and other persons formulating a code of conduct to administer the code of conduct and monitor other compliances under the regulations.

SEBI had approved the regulations in 19th November 2014. The regulations were revamped following the recommendations of Committee headed by N.K Sodhi former Chief Justice of Kerala & Karnataka High courts and former Presiding Officer of Securities Appellate Tribunal. 

Download the Regulations from here

Insider trading is considered a serious violation of securities laws which affects the rights of investors and which has a negative impact on the economy. Recently SEBI had also came up with a new disclosure format which can be downloaded by clicking here.

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