order saying that the existing prohibition of FUTP regulations of 2003 do not clearly define “front-running”, and even if a particular fraudulent transaction could be construed as front-running, the regulations applied only to market intermediaries and not individuals.
The Sebi chairman said that the issue arose as the regulations governing insider trading were amended a few years back. “Earlier, the regulations were different. But now the regulations are that even if you are in the know of that information, whether we are able to establish whether you have used that information or not is immaterial. The very fact that you are possessing that information is enough for us. Given this particular example, we will need to have a serious look at our regulation,” he said.