Supreme Court rules insider trading presumed on confidential info, profit or loss irrelevant

This case involves an appeal by SEBI against a Securities Appellate Tribunal (SAT) order that quashed a finding of insider trading against the Chairman and two Vice Presidents of Tara Jewels Limited. The core issue is whether the sale of shares during a period of unpublished price-sensitive information constitutes insider trading, regardless of whether a profit was made or a loss was avoided.

Appellant: Securities and Exchange Board of India (SEBI); Respondents: Rajeev Vasant Sheth, Aarti Sheth, and Divya Sheth; Bench: Justice Sanjay Karol.

• The Court is reviewing the SAT's decision to set aside the SEBI Whole Time Member's order that found the respondents guilty of insider trading.
• The Court discusses the legal definition of insider trading under Section 12A of the SEBI Act and the PIT Regulations 2015.
• The Court notes that the SEBI Act does not explicitly define 'Insider Trading' but prohibits dealing in securities while in possession of material non-public information.
• The Court references Section 15G of the SEBI Act regarding penalties for insider trading, which can extend to three times the profits made or a fixed amount, whichever is higher.

Written from the document by AI, and checked against it. The original below is authoritative.

The original document