Excerpts from Sebi insider trading regulations, 2002

Posted: Friday, Feb 22, 2002 at 0000 hrs IST
Updated: Friday, Feb 22, 2002 at 0000 hrs IST

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The following is the excerpts from the new Sebi regulations on insider trading:
S.O.N (E) - In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to amend the Securities and Exchange Board of India
(Insider Trading) Regulations, 1992.
I. These Regulations may be called the Securities and Exchange Board of India (Insider Trading) (Amendment) Regulations, 2002.
II. They shall come into force on the date of their publication in the Official Gazette.
III. In the Securities and Exchange Board of India (Insider Trading) Regulations, 1992 (herein after referred to as “the Regulations”).
1. In the title, the words “Prohibition of” shall be inserted, before the words, “Insider Trading” in the bracket.
2. In regulation 1, in sub-regulation (1), the words “Prohibition of” shall be inserted before the words “Insider Trading” in the bracket.
3. In regulation 2:- (a) In clause (c), in sub-clause (ii);-
i) the words “whether temporary or permanent” shall be inserted after the words “and the company” and before the words “and who may reasonably”; ii) “after sub-clause (ii), the following Explanation shall be inserted:-
Explanation:
For the purpose of clause (c), the words “connected persons” shall include persons who is a connected person six months prior to of an act of insider trading.”
(b) in clause (d),
(i) the word “subscribing”, shall be inserted after the words “an act of” and before the words “buying”;
(j) the word “subscribe” shall be inserted after the words “or agreeing to” and before the words, “to buy”.
(c) in clause (e):-
i) the words “by virtue of such connection” appearing before the words “to unpublished price sensitive” shall be omitted.
ii) for the word ‘the’ appearing after the words ‘securities of and before the word ‘company’, the word ‘a’ shall be substituted.
(d) in clause (h),
i) for sub-clause (ii), the following sub-clause, shall be substituted, namely:-
“ii) is an intermediary as specified in section 12 of the Act, Investment company, Trustee...

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