Ishita Mehta, Government Law College, Mumbai
ABSTRACT
This article provides a comprehensive examination of the evolution of insider trading regulations in India, focusing on key developments, influential committees, significant cases, and recent amendments. The study begins by tracing the origins of insider trading regulations and highlights the recommendations made by the Sachar Committee. It further explores the enactment of the SEBI (Prohibition of Insider Trading) Regulations in 1992, which laid the foundation for curbing this unethical practice.
The article then delves into the subsequent amendment of the SEBI (Prohibition of Insider Trading) Regulations in 2015, which introduced stricter norms and enhanced enforcement mechanisms. Noteworthy cases, such as the Shruti Vora case and the PC Jewellers case, are analyzed to understand their impact on shaping insider trading regulations.
Furthermore, the study investigates recent amendments introduced in 2019 and 2022, which aimed to further strengthen the regulatory framework. These amendments address various loopholes, enhance surveillance tools, and bolster the investigative powers of SEBI. The article critically evaluates the effectiveness of these amendments in deterring and prosecuting insider trading offenders.
Through an in-depth analysis of historical developments, landmark cases, and recent amendments, this article offers insights into the evolving landscape of insider trading regulations in India. It highlights the ongoing efforts to combat insider trading and calls for continuous evaluation and refinement of the regulatory framework to ensure fair and transparent markets.
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