SEBI Sets Up Committee to Review Insider Trading Regulation
Bangalore: Looking to address the increasing menace of insider trading activities, market regulator Sebi set up a 16-member committee to suggest new rules, which will replace nearly two-decade old set of norms.
The committee will be headed by N K Sodhi, retired Chief Justice of Karnataka High Court and Former Presiding officer of the Securities Appellate Tribunal (SAT).
The members of the committee comprise of Sebi officials, executives from companies, legal experts and journalists. Sebi had issued guidelines on insider trading around two decades ago to deter the practise of such activities in the securities of listed firms. There have been several amendments to the regulations and judicial paradigm since then.
Sebi said that the 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 seeks review of the extant Insider Trading Regulatory regime in India," the regulator said in a statement.
Other members of the high level committee are Darius Khambata, Advocate General of Maharashtra, Rajeev Luthra, Managing Partner at Luthra & Luthra Law Offices, Larsen & Toubro Chief Executive Officer (CEO) and Managing Director (MD) K Venkataramanan, SBI Capital Markets's MD and CEO Arundhati Bhattacharya.
Besides, two journalist - Mobis Philipose of HT Media Ltd and Menaka Doshi of CNBC TV 18 are also members of the committee. Last month, Sebi Chairman U K Sinha had said the market regulator would set-up a committee to examine insider trading norms.
He had also said the committee would observe the practises that are followed in the other parts of the world and would come out with recommendations on insider trading by next year.
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