| The Securities and Exchange Board of India (Prohibition of Insider Trading)
Regulations, 1992 (the ‘Regulations’), was recently amended by SEBI. In terms of
the Regulations, ‘Insiders’ are prohibited, when in possession of any
unpublished price sensitive information in relation to the Company, from buying /selling
the Company’s securities, either on their own behalf or on the behalf of any other
person. Such ‘Insiders’ are also prohibited from communicating, counseling or
procuring any unpublished price sensitive information to / from any person. Under the Regulations, an ‘Insider’ has been defined as
any person who is or was connected with the Company or is deemed to have been connected
with the Company, and who is reasonably expected to have / had access to unpublished price
sensitive information in relation to the Company’s securities. Such
‘Insiders’ will, inter alia, include:
- Any person having a professional or business relationship
with the Company
- Auditors
- Associate / subsidiary companies
- Debenture Trustees
- Investment Advisors
- Merchant Bankers
In view of the above, ‘Insiders’ are advised not
to deal in the securities of the Company, while in possession of unpublished price
sensitive information. Further, ‘Insiders’ are also advised to acquaint
themselves with the provisions contained in the Regulations. |
