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Whole Time Members will now come under the insider trading rules and will be considered a person with price sensitive information
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Mains Practice Question
Critically examine the implications of extending insider trading rules to Whole Time Members of SEBI, and discuss the potential impact on market transparency and investor confidence.
250 words
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SEBI has banned board members from new investments in which type of instruments?
SEBI has banned board members from new investments in stocks and related instruments, as part of its efforts to prevent insider trading.
Who will now come under the insider trading rules?
Whole Time Members of SEBI will now be considered persons with price-sensitive information and come under the insider trading rules.
What is the term for a person who has access to price-sensitive information?
In the context of SEBI's regulations, an insider is a person who has access to price-sensitive information and is subject to insider trading rules.
Consider the following statements regarding SEBI Insider Trading Rules: 1. Whole Time Members are exempt from insider trading rules. 2. Board members are banned from new investments in stocks and related instruments. 3. The ban on board members' new investments is effective for the next two years. How many of the above statements are correct?
Statement 1 is incorrect because Whole Time Members will now come under the insider trading rules. Statement 2 is correct because SEBI bans board members from new investments in stocks and related instruments. Statement 3 is incorrect because there is no mention of a specific time period for the ban.