SEBI PLANS TO PUT DERIVATIVES IN INSIDER TRADING NET

Insiders will not be able to use derivative instruments to take advantage of privileged information for gains. In a bid to extend the definition of securities to derivative instruments, capital markets regulator, SEBI, has proposed that regulations be amended to broaden the class of securities beyond shares Current regulations leave out disclosure of a key means of taking an exposure to the economic in shares and that too on a leveraged basis (i.e. higher exposure). The proposal is part of SEBI’s proposed norms for insider trading.