The SEBI (Prohibition of Insider Trading) Regulations 2015 (“Insider Trading Regulations”) which was published in the official gazette earlier this year on January 15, 2015 will finally come into effect on May 15, 2015, i.e. 120 (one hundred and twenty) days from the date of the official gazette. After several discussions and committee reports on the issue of insider trading, the Insider Trading Regulations will look to protect the interests of investors in the listed securities market and to create a level playing field amongst them, while its main object will be to protect confidential unpublished price sensitive information relating to listed securities.
The coming into effect of the Insider Trading Regulations will introduce a stringent regime in line with international practices. The effective implementation of these Regulations will be something to watch out for in the days to come.