The ‘why’ of a trade will matter in insider trading cases4 min read . Updated: 22 Sep 2022, 11:11 PM IST
The Supreme Court’s decision dismissing Sebi’s appeal in an insider trading case has brought in the ‘why’ test of a share trade in determining if it constitutes a violation of Indian rules
A recent Supreme Court (SC) decision in the matter of Abhijit Rajan, the erstwhile chairman and managing director of Gammon Infrastructure, is the latest missive from India’s apex court on insider trading. Based on a straightforward fact pattern, the order surgically cuts through two eternal dilemmas of insider trading enforcement: what constitutes price-sensitive information, and how one gleans the underlying motive behind such trades.
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