A company being a juristic person is answerable for its act. However, the PIT Regulations itself provides that in case of non-individual insiders, with respect to an allegation of violation of Regulation 4(1), a defence can be taken by such insiders that persons who took trading decisions and the person who were in possession of UPSI, were the different persons.
The time has come for listed companies and other market participants, intermediaries and service providers to revisit their internal codes of conduct under the Insider Trading Regulations. The Securities and Exchange Board of India (“SEBI”) has vide notification dated 15th January 2015 published the SEBI (Prohibition of Insider Trading) Regulations 2015 (“New PIT Regulations”) replacing... Continue Reading →
The SEBI board meeting minutes (“SEBI Press Release”) describe the sweeping changes released by SEBI with respect to SEBI (Prohibition of Insider Trading) Regulations (“1992 PIT Regulations”). SEBI (as the spectator) in seeking to eliminate asymmetry of information and capacity to deal in securities, through its reforms to the insider trading regulations and to ensure a... Continue Reading →
Justice K.S. Radhakrishnan has held in a recent case that: “SEBI, the market regulator, has to deal sternly with companies and their Directors indulging in manipulative and deceptive devices, insider trading etc. or else they will be failing in their duty to promote orderly and healthy growth of the Securities market. Economic offense, people of... Continue Reading →
The Union Finance minister in his budget speech said: “Angel investors bring both experience and capital to new ventures. SEBI will prescribe requirements for angel investor pools by which they can be recognised as Category I AIF venture capital funds.” And SEBI did! [Incidentally, the Union Finance Minister also said: “Small and medium enterprises, including... Continue Reading →
SEBI in its board meeting yesterday, has approved sweeping reforms in many sectors. One such area is alternative listing opportunity to the SME sector. SEBI has created an Institutional Trading Platform (ITP) without the requirement of making an IPO. SEBI approved the proposal to amend the SEBI (ICDR) Regulations to permit listing of ‘startups’ and... Continue Reading →