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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 ..... ublication 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 professional or business relationship between himself and the company a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 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 a mutual fund or is an employee thereof. Who have a fiduciary relationship with the company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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or on behalf of any other person, deal in securities of a company listed on any stock exchange on the basis of any unpublished price sensitive information; or (ii) Communicate any unpublished price sensitive information to any person, with or without his request for such information, except as required in the ordinary course of business or under any law; or (iii) counsel or procure any other person to deal in securities of any company on the basis of unpublished price sensitive information. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice. (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 statements and information relating to the transactions in securities market within such time as the said authority may require. (2) The insider shall allow the investigating authority to have reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 insider under sub-regulation (2) of regulation 9, the Board may with out prejudice to its right to initiate criminal prosecution, under section 24 of the Act, give such directions to protect the interest of investors and in the in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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