On 15 January 2015, the Securities Exchange Board of India (“SEBI”) introduced a revamped Insider Trading Regulations after more than 2 decades of the first regulations brought in force on the issue. Initially, SEBI (Prohibition of Insider Trading) Regulations 1992 (“1992 Regulations”) was the only regulation that was brought into force by SEBI upon its establishment. Taking heed of the perceived lacunae and inadequacies of the 1992 Regulations, SEBI had set up a High Level Committee constituted under the Chairmanship of Justice (Shri) N.K. Sodhi in 2013 for its recommendations on the legal framework for prohibition of insider trading in India. The first draft of SEBI (Prohibition of Insider Trading) Regulations 2015 (the “Regulations”) was brought earlier in the year 2013. The SEBI (Prohibition of Insider Trading) Regulations, 2015 (“Regulations”) have, with certain exceptions, followed the recommendation of the Committee. The Regulations are to come into effect on the 120th day of their notification in the Official Gazette.
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