A tale of two jurisdictions

Distinctions between the laws on insider trading in India and the US are nuanced rather than evident

The standard for treating as illegal, trading by those tipped off with price-sensitive information by insiders, underwent yet another yo-yo in the United States last week. The constant change in standard on what constitutes illegal insider trading is a hallmark of insider trading law in that country.

An appellate court has ruled that it would not be necessary to show that the person, who receives a tip-off from an insider, has to have a “meaningfully close personal relationship” with the latter. The same court had ruled in December 2014 that such a relationship would be vital to hold that insider trading