Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 12A (e) 1992 – Regulation 3(i) r/w Regulation 4 – Securities and Exchange Board of India Act Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations 15Z and 30 1992 – ss. 12A (d) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 – Regulation 3(i) r/w Regulation 4 – Securities and Exchange Board of India Act, 1992 – ss. 12A (d), 12A (e),15Z and 30 – Insider trading – Price sensitive information – Whether information regarding decision of the Board of Directors of GIPL to terminate the contracts in question can be characterized as “price sensitive information” and whether sale by respondent of the equity shares held by him in GIPL, under peculiar and compelling circumstances in which he was placed, fell within the mischief of ‘insider trading’ in terms of Regulation 3(i) read with Regulation 4 – Held: On facts, the information regarding termination of the contracts in question can be characterized as price sensitive information, in that it was likely to place the existing shareholders in an advantageous position, once the information came into the public domain – In such circumstances, the sale by respondent, of the shares held by him in GIPL would not fall within the mischief of insider trading, as it was somewhat similar to a distress sale, made before the information could have a positive impact on the price of the shares – Respondent had no motive or intention to make undeserved gains by encashing on the unpublished price sensitive information that he possessed. Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 – Regulation 3 – Violation of – When – Held: To find out if a person is guilty of violation of Regulation 3, the Court should address itself to the following questions namely, (i) is he an insider; (ii) did he possess or have access to any information relating to the company; iii) whether such information was price sensitive; (iv) whether the information was unpublished; and (v) whether he dealt in securities by subscribing, buying, selling or agreeing to do any of these things in any securities |
Judge | Hon'ble Mr. Justice V. Ramasubramanian |
Neutral Citation | 2022 INSC 979 |
Petitioner | Securities And Exchange Board Of India |
Respondent | Abhijit Rajan |
SCR | [2022] 9 S.C.R. 669 |
Judgement Date | 2022-09-19 |
Case Number | 563 |
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