Insider Trading in India - Regulations

SECURITIES AND EXCHANGE BOARD OF INDIA (1[PROHIBITION OF] INSIDER TRADING) REGULATIONS, 1992 In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board, with the previous approval of the Central Government, hereby makes the following regulations, namely:— CHAPTER I PRELIMINARY Short title and commencement. 1. (1) These regulations may be called the Securities and Exchange Board of India (2[Prohibition of] Insider Trading) Regulations, 1992. (2) These regulations shall come into force on the date of their publication in the Official 3Gazette. Definitions. 2. In these regulations, unless the context otherwise requires:— (a) “Act” means the Securities and Exchange Board of India Act, 1992 (15 of 1992); (b) “body corporate” means a body corporate as defined in section 2 of the Companies Act, 1956 (1 of 1956); (c) “connected person” means any person who— (i) is a director, as defined in clause (13) of section 2 of the Companies Act, 1956 (1 of 1956), of a company, or is deemed to be a director of that company by virtue of sub-clause (10) of section 307 of that Act; or (ii) occupies the position as an officer or an employee of the company or holds a position involving a professional or business relationship between himself and the company 4[whether temporary or permanent] and who may reasonably be expected to have an access to unpublished price sensitive information in relation to that company. 5 [Explanation :— For the purpose of clause (c), the words “connected person” shall 6[mean] any person who is a connected person six months prior to an act of insider trading;] (d) “dealing in securities” means an act of 7[subscribing,] buying, selling or agreeing to 8 [subscribe,] buy, sell or deal in any securities by any person either as principal or agent;
Inserted by the SEBI (Insider Trading) (Amendment) Regulations, 2002,w.e.f. 20.02.2002. ibid. 3 19.11.1992. 4 ibid. 5 ibid. 6 Substituted for “include”