NEW INSIDER TRADING REGULATIONS: WOULDN’T LESS BE MORE?

Published On: 01/05/2015

Practice Area: Mergers & Acquisitions

Authors:

With effect from May 15, 2015, the new insider trading regulations, notified by the Securities and Exchange Board of India (SEBI) have come into force. The SEBI (Prohibition of Insider Trading) Regulations, 2015 (New Regulations) will replace the SEBI (Prohibition of Insider Trading) Regulations, 1992 (Old Regulations). The need for bringing in the New Regulations could well be understood from the fact that more than two decades have passed since SEBI issued the Old Regulations. More important than the time period, are the changes that listed companies in India, the stock markets and the Indian economy as a whole have undergone since 1992.