 "Sebi panel begins review of insider trading rules")
The group had a two-hour long meeting which was also attended by Sebi Chairman U K Sinha, said sources present at the meeting. While the first meeting involved broad discussions on the matter, major decisions regarding changes in insider trading rules will likely be taken only in subsequent meetings, said another person in the know.
"The existing framework for insider trading was discussed. What new regulations can be incorporated were mulled upon. Also, it was debated whether public comments need to be taken before new regulations are framed," said a committee member, who didn't wish to be identified.
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Sebi's legal team too, attended the meeting. It provided an overview on the issues involved in fighting against insider trading. Insider trading is a practice by which a person takes a position in a company's securities on the basis of information which is not available to the public.
The regulator has asked for recommendations from the committee members which are to be submitted before the next meeting.The committee will hold its second meeting in June.
Some of the members of the committee include Darius Khambata, advocate general of Maharashtra, Rajeev Luthra, managing partner, Luthra & Luthra and Nirmal Jain, chairman and managing director, India Infoline.
The current regulations on insider trading - Sebi (Prohibition of Insider Trading) Regulations, 1992 - have seen several amendments over the years, however, the regulator is eyeing a complete revamp of the existing framework to deal more effectively with the menace of insider trading.
Sebi wants to align the regulations with global standards. The US market regulator Securities and Exchange Commission (SEC), for instance, has cracked down on several insider trading cases with wiretaps. However, Sebi is yet to get access to call data records of people it is probing despite repeated requests to the government.
A source also suggested that Sebi may release a note next week detailing the path that the committee is likely to take on the insider trading regulations.
Interestingly, the committee has met in the same week that the Securities Appellate Tribunal heard a petition on one of the most-talked about cases of alleged insider trading.
Reliance Industries has appealed in the tribunal against Sebi's rejection of its application to settle the probe through payment of a monetary penalty, under the regulator's consent mechanism. The Reliance case too, is next scheduled for June.