Biocon controversy: Sebi's insider trading laws may need an overhaul

Sebi regulations define "insider" as a company associate who is trading in the company's shares based on unpublished price sensitive information (UPSI) to make a quick buck

When Biocon Chairperson Kiran Majumdar-Shaw — well known for raising issues ranging from lack of civic services in Bengaluru to climate change — decided to take on the Indian stock market regulator, the Securities and Exchange Board of India (Sebi), she forced the Indian corporate world and legal community to take notice.

In an interview to this paper, Majumdar-Shaw called a Sebi order to impose a fine on insider trading charges against a Biocon employee and an external consultant an “Agatha Christie” fiction, which destroyed the reputation of “innocent people”. “The order is pure harassment and has caused huge reputational damage