Draft insider trading norms in 10 days: Sebi

The Securities and Exchange Board of India, Sebi, is expected to come out with a draft on its new insider trading norms in 10 days, and formalise rules for real estate investment trusts, or REITs, in its forthcoming board meeting in December, chairman UK Sinha said today.

According to Sinha, a 14-member panel set up by the market regulator in March to review insider trading norms was ready with its recommendations.

The board of Sebi would receive the committee's report within 10 days, following which it is likely to be released for public feedback before finally formalising the new rules.

Sinha said on the sidelines of a conference organised by rating agency Crisil Ltd, that he had been told the report was ready.

On 6 March, Sebi constituted the panel, headed by NK Sodhi, retired chief justice of Karnataka high court and former presiding officer of the Securities Appellate Tribunal (SAT), for review of insider trading norms. Members comprised SEBI officials, executives from companies, legal experts and journalists.

The current insider trading regulations have been amended several times since they were put in place nearly two decades ago.

''…world over, the regulatory focus is shifting towards containing the rising menace of insider trading effectively. To ensure that the regulatory framework dealing with insider trading in India is further strengthened, Sebi (Securities and Exchange Board of India) seeks review of the extant insider trading regulatory regime in India,'' a Sebi statement had said then.

The current set of norms which are nearly two-decades old would be replaced by the new insider trading regulations.

The new norms would also take into account the prevailing norms in other parts of the world.