SEBI is in the verge of amending the insider trading regulations so as to make any 'Designated Insiders' to surrender his profit if he enters to a buy and sell transaction within six months in line with sec 16(b) of Securities Exchange Act of U.S.
Conditions when Triggerred-:
1) When you are an Designated Insider-
'Designated Insider' will be defined in a broader way than current insider definition but will be narrower than current deemed Insider definition.Directors,officers and 10% owners will be included.
2)When you buy and sell within Six months
3)Intent of the person is Immaterial-
No need to find Guilt
4)Short Swing Profit to be surrendered
If any professional has any suggestion to make regarding
1) the definition of term 'designated insider' or
2) exemption to be granted (like Merger,Amalgamation,Regulatory Approval,Gift etc) or
3) calculating the purchase and sale price or
4) counting of six months
can offer it to vidishak@sebi.gov.in..........
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