Under regulation 4(1) of the SEBI (Prohibition of Insider Trading) Regulations, 2015, which person is…
The prohibition concerns trading while possessing unpublished price-sensitive information, subject to the regulatory defences and exceptions. A journalist may also be an…
Choose your answer
Under regulation 4(1) of the SEBI (Prohibition of Insider Trading) Regulations, 2015, which person is outside the trading prohibition on these facts? Assume listed securities and no applicable defence or exception.
Answer and explanation
Correct answer A
The prohibition concerns trading while possessing unpublished price-sensitive information, subject to the regulatory defences and exceptions. A journalist may also be an insider. Whether the prohibition applies here turns on possession of unpublished price-sensitive information.
See regulations 2(1)(g) and 4(1) of the SEBI (Prohibition of Insider Trading) Regulations, 2015.
Option feedback
Option A
The journalist lacks unpublished price-sensitive information on the stated facts; occupation itself creates no immunity.
Option B
The director possesses such information and trades, as prohibited on these facts.
Option C
The auditor possesses such information and trades, as prohibited on these facts.
Option D
The employee possesses such information and trades, as prohibited on these facts.
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Delhi Judicial Services