1. INTRODUCTION
On September 17, 2019 the Securities and Exchange Board of India
("SEBI") notified amendments to the
insider trading regime by notifying the SEBI (Prohibition of
Insider Trading) (Third Amendment) Regulations, 2019 (the
"Amendment")1 which shall
come into force on December 26, 2019.
The Amendment is brought in place to encourage individuals to
come forward and inform SEBI about violations of insider trading
laws that have occurred, are occurring or may occur and also aims
to reward such persons.
2. KEY HIGHLIGHTS
The key highlights of the Amendment are discussed below.
2.1 New Definitions
The Amendment has introduced the following key definitions.
An "Informant" is any individual who
voluntarily provides Original Information to SEBI relating to any
violation of insider trading laws that has occurred, is occurring
or has a reasonable belief that it is about to occur.
