Rules to check insider trading notified
Mumbai: Indian companies will now have to take stringent measures to maintain confidentiality of price-sensitive information and prevent insider trading.

As per the new insider trading regulations, Sebi (Insider Trading) Amendment Regulations 2002, the onus has been put on companies to frame an internal code of conduct to prevent insider trading and misuse of price-sensitive information by employees and directors.

All listed companies are required to appoint a senior employee as compliance officer, who will report directly to the managing director or CEO of the company. He will be responsible for ensuring that price-sensitive information does not leak out, monitor trades and implement the code of conduct under the board's supervision.
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