Sep 30, 2022

SC Held That Mere Possession of UPSI is Insufficient to Constitute “Insider Trading”

In Securities Exchange Board of India v. Abhijit Rajan,[1] the SC held that for an offence of insider trading under the Securities and Exchange Board of India (Prohibition of Insider Trading Regulations), 1992, the motive to make profit / gain is essential. If a person enters into a transaction which is likely to result in loss, he cannot be accused of insider trading.

 

[1] Securities Exchange Board Of India v. Abhijit Rajan, 2022 SCC OnLine SC 1241.

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