Shreehas P Tambe Vs. SEBI (Securities Appellate Tribunal); Appeal No. 491 of 2021;26/07/2022
KEY MESSAGE
Insider despite having unpublished price sensitive information (UPSI) of the Company can afford to sell his shares in the company for meeting his financial commitment of bona fide purpose and such sale proceeds are immediately used as such where due care has been taken to obtain the pre-clearance sale from the Company would get protected under the exclusion to proviso Regulation 4(1) of SEBI (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulation) as held in the case of Shreehas P Tambe vs SEBI And report the sale transaction to the Company within 48 hours from the date of sale
Cases cited
| Appeal # | Case title | SAT held that |
|---|---|---|
| 209 of 2011 | Mrs Chandrakala Vs SEBI | If the trades were not induced by UPSI then the said person was not guilty of insider trading despite having traded while in possession of the UPSI |
| 536 of 2021 | Rajeev Vasant Seth v SEBI | Proviso to Regulation 4(1) is inclusive and not exhaustive |
| Dec 18,2020 | UDAYANT MAHHOTRA |
WTM held proviso to Regulation 4(1) are merely illustrative and not exhaustive and an insider can demonstrate circumstances other than those mentioned in the said proviso to prove his innocence |
Regulations Violated
Regulation 4(1) of PIT Regulation 2015
Section 12A(d) of the SEBI Act 1992
Regulation 7(2)(a) of PIT Regulation 2015
Clause 6 of the code of conduct
Facts of the Case
