Rapid Fire
Delays in Enforcing Insider Trading Norms for Mutual Funds
- 28 Nov 2023
- 1 min read
A year after mutual funds were brought under insider trading regulations by the Securities and Exchange Board of India (SEBI), operational challenges and delays in enforcement persist, impacting the implementation of key norms.
- Insider trading is the act of buying or selling stocks or other securities of a company based on Unpublished Price Sensitive Information (UPSI) that can affect their value.
- This information is not available to the public and gives an unfair advantage to the insiders who use it.
- Insider trading is illegal, but if an insider trades their holdings and reports it properly, it is an insider transaction, which is legal.
- The law requires insiders to report their trades to the authorities and follow certain rules to prevent insider trading.
Read more: Mechanism to Prevent Insider Trading
