Insider trading is an offence under Indian laws. Who among the following, in the normal circumstances,…
Under the SEBI (Prohibition of Insider Trading) Regulations, 2015, an insider is a connected person, such as a director, employee or auditor whose position gives access to…
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Insider trading is an offence under Indian laws. Who among the following, in the normal circumstances, will not be accused of insider trading?
Answer and explanation
Correct answer A
Under the SEBI (Prohibition of Insider Trading) Regulations, 2015, an insider is a connected person, such as a director, employee or auditor whose position gives access to unpublished price-sensitive information, or anyone who has such information. A "Financial journalist covering a company" ordinarily works only with published information and is not a connected person, so in normal circumstances he will not be accused of insider trading. Directors, auditors and employees are connected persons because of their relationship with the company.
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Delhi Judicial Services