TMI BlogSecurities and Exchange Board of India (Insider Trading) Regulations, 1992X X X X Extracts X X X X X X X X Extracts X X X X ..... all come into force on the date of their publication in the Official Gazette. 2. Definitions.- 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 professi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Monopolies- and Restrictive Trade Practices Act, 1969 (54 of 1969) as the case may be; or (ii) is an official or a member of a stock exchange or of a clearing house of that stock exchange, of a dealer in securities within the meaning of clause (c) of section 2, and section 17 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) respectively, or any employee of such member or dealer of a stock-exchange; (iii) is a merchant banker, share transfer agent, registrar to an issue, debenture trustee, broker, portfolio manager, Investment Advisor, sub-broker, Investment Company or an employee thereof, or is member of the Board of Trustees of a mutual fund or a member of the Board of Directors of the Asset Management Company of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whole of the undertaking; (vii) such other information as may affect the earnings of the company. (viii) any changes in policies, plans of operations of the Company. CHAPTER II PROHIBITION ON DEALING, COMMUNICATING OR COUNSELLING 3. Prohibition on dealing, communication of counselling on matters relating to insider trading.- No insider shall - (i) either on his own behalf or on behalf of any other person, deal in securities of a company listed on any stock exchange on the basis of any unpublished price sensitive information; or (ii) Communicate any unpublished price sensitive information to any person, with or without his request for such information, except as required in the ordinary course of busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Board is satisfied that in the interest of investors or in public interest no such notice should be given, it may be an order in writing direct that the investigation be taken up without such notice. (3) On being empowered by the Board, the investigation authority shall undertake the investigation and inspection of books of account and the insider against whom an investigation is being carried out shall be bound to discharge his obligation as provided in regulation 7. 7. Obligation of insider on investigation by the Board.-( 1) It shall be the duty of every insider, who is being investigated, to produce to the investigating authority such books, accounts and other documents in his custody of control and furnish the authority with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ider, the Board may call upon the insider to take such measures as the Board may deem fit to protect thy interest of investors and in the interest of the securities market and for due compliance with the provisions of the Act, rules made thereunder and these regulations. 10. Appointment of Auditor.- Notwithstanding anything contained in regulation 5, the Board may appoint a qualified auditor to investigate into the books of account or the affairs of the insider; Provided that, the auditor so appointed shall have the same powers of the inspecting authority as stated in regulation 5 and the insider shall have the obligations specified in regulation 7, 11. Directions by the Board.- On receipt of the explanation, if any, from the ins ..... X X X X Extracts X X X X X X X X Extracts X X X X
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