Start learning 50% faster. Sign in now
As per Reg 3- Communication or procurement of unpublished price sensitive information. (1)No insider shall communicate, provide, or allow access to any unpublished price sensitive information, relating to a company or securities listed or proposed to be listed, to any person including other insiders except where such communication is in furtherance of legitimate purposes, performance of duties or discharge of legal obligations. NOTE:This provision is intended to cast an obligation on all insiders who are essentially persons in possession of unpublished price sensitive information to handle such information with care and to deal with the information with them when transacting their business strictly on a need-to-know basis. It is also intended to lead to organizations developing practices based on need-to-know principles for treatment of information in their possession. (2)No person shall procure from or cause the communication by any insider of unpublished price sensitive information, relating to a company or securities listed or proposed to be listed, except in furtherance of legitimate purposes, performance of duties or discharge of legal obligations. NOTE:This provision is intended to impose a prohibition on unlawfully procuring possession of unpublished price sensitive information. Inducement and procurement of unpublished price sensitive information not in furtherance of one’s legitimate duties and discharge of obligations would be illegal under this provision. [(2A) The board of directors of a listed company shall make a policy for determination of “legitimate purposes” as a part of “Codes of Fair Disclosure and Conduct” formulated under regulation 8.Explanation –For the purpose of illustration, the term “legitimate purpose” shall include sharing of unpublished price sensitive information in the ordinary course of business by an insider with partners, collaborators, lenders, customers, suppliers, merchant bankers, legal advisors, auditors, insolvency professionals or other advisors or consultants, provided that such sharing has not been carried out to evade or circumvent the prohibitions of these regulations.] [(2B) Any person in receipt of unpublished price sensitive information pursuant to a “legitimate purpose” shall be considered an “insider” for purposes of these regulations and due notice shall be given to such persons to maintain confidentiality of such unpublished price sensitive information in compliance with these regulations.
Under the Consumer Protection Act a complaint must be resolved within three months if no analysis is required and within __________ if analysis or testi...
For the purpose of hearing any reference under Article 143 of Constitution of India, the minimum number of judges of Supreme Court who are to sit for th...
Which case is known as Post-Master Case?
Which legal maxim had been applied in the case Hadley v. Baxendale?
"A" who is a citizen of India, commits crime in Nigeria.
Under which Section of the Indian Penal Code, 1860, he can be tried in India.
Where the amount to be spent by a company for the Corporate Social Responsibility Policy _____________, the requirement for the constitution of the Corp...
Under which Article of the Constitution of India can the President take over the administration of a state in case its constitutional machinery breaks d...
As per the Insurance Act, 1938 every insurer, being a company or body incorporated under any law for the time being in force in India, shall furnish ___...
A disputed handwriting can be proved_______
The Article 16-4A of the Constitution provides for which of the following ___________