What requirement is placed on insiders regarding trading in securities...
Insiders are required to adhere to specific restrictions when trading in securities. According to SEBI regulations, insiders must not trade in securities when they are in possession of unpublished price-sensitive information. This regulation aims to prevent the misuse of such information for personal gains in stock trading.
What requirement is placed on insiders regarding trading in securities...
Insiders are required to follow specific regulations when trading in securities to ensure fair and transparent markets. The SEBI regulations impose the following requirement on insiders:
Prohibition on trading with unpublished price-sensitive information:
Insiders must not trade in securities when in possession of unpublished price-sensitive information. This information could potentially impact the price of the securities once made public, giving insiders an unfair advantage over other market participants. Trading based on such information is considered insider trading and is illegal.
In order to prevent market manipulation and maintain market integrity, SEBI mandates that insiders refrain from trading when in possession of unpublished price-sensitive information. This requirement helps protect the interests of investors and ensures a level playing field in the securities market.
In conclusion, insiders are prohibited from trading in securities when they possess unpublished price-sensitive information in accordance with SEBI regulations. It is essential for insiders to comply with these regulations to uphold the integrity of the financial markets.