Insider Trading and Takeover Code

Insider trading is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. The legal version is when corporate insiders—officers, directors, and employees—buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC. Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information.This course examines important facets of the regulation of corporations. It investigates the law and policy relating to the acquisition of control of corporations, particularly by takeover, and the regulation of financial markets generally.As these concepts, viz. insider trading and takeover, have assumed significance in the Indian corporate world, BSE has designed a one-day workshop to help participants understand the existing regulatory framework in India, based on case studies.Highlights of the Workshop Introduction Overview of SEBI (Prohibition of Insider Trading) Regulations, 1992 Compliance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 Case study Questions and Answers