Insider Trading Regulations: Who is Liable for What Under the New SEBI Rules? A Checklist
On 31 December 2018, the Securities & Exchange Board of India (SEBI) rationalised the insider trading regulations by segregating the responsibilities of the listed entities, intermediaries and the fiduciaries in line with the recommendations made by the TK Vishwanathan Committee on fair market conduct. The amendments take effect from 1 April 2019. Considering it leaves fewer than 90 days in hand, it is crucial to understand the ‘to do compliances’ for each entity, especially as regards the unpublished price sensitive information (UPSI). Here is a list of actionables for listed companies and the intermediaries including fiduciaries for ready reference.
 
 
(The author works in the corporate law division of Vinod Kothari & Company.) 
 
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SEBI constitutes panel to link research to policy making
Market regulator Security and Exchange Board of India (SEBI) has constituted a "Research Advisory" committee which will assist in formulating policy to undertake research relevant for development and regulation of capital markets.
 
According to SEBI, the committee would comprise prominent financial economists and market practitioners. It will be headed by Sankar De.
 
"In order to strengthen its research function and enhance its linkage to policy making, SEBI has constituted a 'Research Advisory Committee' headed by Sankar De," a SEBI statement said.
 
Among the other functions of the committee will be defining objectives, scope and direction of research relevant for development and regulation of capital markets in the country with focus on "linkage of research to policy making".
 
The statement further said that another key task of the committee will be to maintain databases relevant for capital market regulation research.
 
"Exploring research collaborations with external researchers, including other regulators as well as academic institutions, both domestically and overseas, as appropriate," the statement noted about the functions of the committee.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Maharashtra Minister Subhash Deshmukh’s Lokmangal Agro’s Bank, Demat Account Attached
Market regulator Securities and Exchange Board of India (SEBI) has issued attachment orders against Lokmangal Agro Industries and seven of the company directors for failing to refund Rs74.82 crore to investors. The Lokmangal Group is associated with Maharashtra’s minister for cooperative, Subhash Deshmukh, whose wife Smita is one of the directors against whom SEBI has passed the order.
 
Earlier on 16 May 2018, SEBI had asked Lokmangal Agro and its directors, Smita Subhash Deskhmukh, Vaijnath Nagappa Lature, Audumber Sandipan Deshmukh, Shahaji Gulchand Pawar, Gurrana Apparao Teli, Mahesh Satishchandra Deshmukh and Parag Suresh Patil to refund funds worth Rs74.82 crore collected from investors with an interest of 15%. However, the company and its directors failed to refund the money to investors and did not furnish any report of repayment. 
 
In its recovery proceeding orders issued on 3 January 2019, Jai Sebastian, deputy general manager and recovery officer of SEBI, says, “Till date, the defaulters have not replied and field any asset details. In these circumstances and as per the conduct of the defaulters, there is likelihood that the defaulter/s  may take out the funds or securities from their bank or demat account…in order to protect the assets from any sort of alienation, it is necessary to attach the bank, demat and mutual fund accounts to prevent the defaults from removing or concealing the same.” 
 
Lokmangal was banned from the securities market for at least four years. The funds were raised in contravention of the provisions of the Companies Act and Issue of Capital and Disclosure Requirements (ICDR) Regulations, the regulator said.
 
Lokmangal group from Solapur was headed by minister Deshkumkh, however after he was inducted in the state cabinet, he handed over the reins of the group to his son. However, the Lokmangal group has been under the regulatory lens of various authorities.
 
Besides the notice from SEBI, earlier in November 2018, Maharashtra government had asked the district dairy development officer from Solapur to file a first information report (FIR) against Lokmangal Multistate Cooperative Society, headed by Mr Deshmukh. This was result of cancellation of Rs24 crore contract given to the society by the department. 
 
“A report submitted by the animal husbandry department had concluded that Mr Deshmukh’s society submitted forged and fabricated documents from the Maharashtra Pollution Control Board in Pune and Solapur; the Industrial Security and Health Department, Solapur; the Food and Drug Administration, Solapur; and Deputy Divisional Engineer, Public Works Department, North Solapur,” says a report from the Hindu.
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