The new norms, being finalised on the basis of an expert panels suggestions and public comments on this issue, would strengthen the system for controlling and preventing insider trading and also provide greater clarity to the company executives, promoters and others on their trading activities, Sebi chairman UK Sinha said.
This new set of regulations would replace nearly two-decade old insider trading norms currently in place and public comments have been invited till December 31 on draft norms suggested by an expert committee set up by the market regulator.
The aim is that all points that lacked some clarity, would be made very clear now and by providing this clarity, innocent mistakes can be avoided, Sinha said.
The new norms are expected to put in place stricter penalties for those found to be indulging in insider trading activities, while it has also been proposed that public servants, regulators and persons holding statutory positions should be brought under its purview if they are handling share price-sensitive information about listed companies.
But another important thing that I want to communicate is that these norms also provide a clarity, Sinha said. These norms would provide very clear guidelines on what is doable and what is not illegal, so that innocent mistakes and genuine transactions do not get affected because of insider trading rules, he said.