SEBI Notifies Strict Insider Trading Norms

Last Updated: 5 Apr 2023

SEBI on Thursday notified a stricter set of insider trading norms to check illicit transactions in shares of listed firms by management personnel and ‘connected persons’.

These regulations may be called the SEBI (Prohibition of Insider Trading) Regulations, 2015. These regulations shall come into force on the one hundred and twentieth day from the date of its publication in the Official Gazette.

No insider shall communicate, provide, or allow access to any unpublished price sensitive information, relating to a company or securities listed or proposed to be listed, to any person including other insiders except where such communication is in furtherance of legitimate purposes, performance of duties or discharge of legal obligations.

No person shall procure from or cause the communication by any insider of unpublished price sensitive information, relating to a company or securities listed or proposed to be listed, except in furtherance of legitimate purposes, performance of duties or discharge of legal obligations.

An insider shall be entitled to formulate a trading plan and present it to the compliance officer for approval and public disclosure pursuant to which trades may be carried out on his behalf in accordance with such plan.