Insider Trading and Takeover Code

Program

Insider trading means trading of a corporate's securities by the insiders, viz. directors, management personnel, shareholders, etc. of the corporate based on some unpublished price sensitive information. Insider trading brings prices closer to their fair values; insiders enhance market efficiency. Thus, mere Insider trading may be perfectly legal, but the term assumes notoriety when such trading takes place based on material non-public information obtained during the performance of the insider's duties at the corporate or misappropriated otherwise. The prevention of insider trading is widely treated as an important function of securities regulation. Accordingly, the securities market regulators, all over the world, have been making efforts to put in place a proper regulatory framework to prohibit insider trading, if not able to prevent it completely.

Takeover of companies is one of the most important corporate restructuring tools. It is a well accepted and established strategy for corporate growth. A takeover bid is generally understood to imply acquisition of shares carrying voting rights in a company, substantive enough to control the company, in direct or indirect manner. The process of takeover must provide equality of treatment and opportunity to all shareholders and more importantly, protection of interests of minority shareholders. Most of the securities market jurisdictions have put in place safeguards in the form of regulations based on the principles of fairness, transparency and equity. With the process of liberalization and globalization of Indian economy, the market for takeovers has become significantly active.

As these concepts, viz. insider trading and takeover, have assumed significance in the Indian corporate world, BSE has designed a one-day workshop to help participants understand the existing regulatory framework in India, based on case studies.

  • Introduction
  • Overview of SEBI (Prohibition of Insider Trading) Regulations, 1992
  • Compliance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
  • Case study
  • Questions and Answers


  • Participants attending the entire course shall be eligible to receive Participation Certificate from the BSE Institute Ltd.

    Corporates, Investment Bankers, Investment Consultants and other Financial Intermediaries

    1 day
    10.00 am to 5.30 pm

    Rs. 6,000.00 + Applicable Taxes per participant inclusive of tuition fees, and (morning / evening) refreshments only.

    For further details regarding contents,
    E-mail: training@bseindia.com