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Section 195 of companies act & insider trading regulation

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Varsha

49 Points Posted on 15 September 2015

Dear Friends,

Section 195 :Prohibits the insider trading by persons expected to have access to Unpublished price sensitive information of the Company.

Whereas SEBI Insider trading regulations allows Insider trading after certain disclosures and pre-clearance.

Whether a Director of Listed company is prohibitted from trading in shares under companies act even if he is allowed under SEBI regulations??? Whether he will be penalised under Companies Act, 2013????

In the case of conflict in two laws, Is it advisable for not trading itself to avoid any penalties???

Kindly advice.

Thanks

Varsha

Replies (2)

Manish Agarwal

24 Points Posted on 15 September 2015

Sebi regulations an co act 2013 are mostly at par however if there is any conflicts its advisible not to trade in security and especially by person holding such a higher post in company

Siddhi

article

26 Points Posted on 19 December 2017

Can a promoter director sale/purchase his holding after clearing trade plan ? if yes, What is the consequances if after clearing trade plan he was not execute the same.