Logo


Somasekhar Sundaresan: Contrary reading of law by regulator

An informal guidance letter issued by Sebi to a listed commercial bank will put the regulator in a unique position - of holding a view that violative insider trading can take place even when the person trading has no access to inside information

Somasekhar Sundaresan

The Securities and Exchange Board of India (Sebi) has added yet another unique feature of its understanding of insider trading. An informal guidance letter issued to a listed commercial bank will put the Indian regulator in a unique unparalleled position in the world - of holding a view that violative insider trading can take place even when the person trading has no access to inside information. According to the informal guidance, trades by a discretionary portfolio manager who independently trades at her own discretion on behalf of her clients who have authorised her to trade without any ...