Tuesday, October 14, 2008
SEBI moves to tighten insider trading norms by prohibiting opposing transactions
In an earlier post, Mihir had remarked that while arguments for legalizing insider trading are interesting, there is a long way to go before they are actually accepted by legal systems. SEBI’s recent move to tighten insider trading norms is a case in point. ET reports that SEBI will soon amend its regulations to ban insiders from any opposing transaction within a period of six months. ‘Insider’ has been defined quite widely, and includes any ‘officer’ of a company who owns more than 10 %, either directly or indirectly. ET's detailed analysis of this proposal is available here.