Market regulator Securities and Exchange Board of India (SEBI), to curb the menace of insider trading, has set up a new committee headed by former chief justice of Karnataka High Court Justice N. K. Sodhi to review insider trading norms.
SEBI said two decades have passed since the SEBI (Prohibition of Insider Trading) Regulations, 1992, were notified which was framed to deter the practice of insider trading in the securities of listed companies.
Since then, there had been several amendments to the Regulations and judicial paradigm through case laws had also evolved in India.
“In fact, world over, the regulatory focus is shifting towards containing the rising menace of insider trading effectively. To ensure that the regulatory framework dealing with insider trading in India is further strengthened, SEBI has decided to review the extant Insider Trading Regulatory regime in India,” SEBI said.
