CURRENT AFFAIRS

Detailed explanation-1: -Capital markets regulator SEBI levied fines on Aadhaar Ventures India Ltd (AVIL) and its directors for violating insider trading rules and listing conditions.

Detailed explanation-2: -1[15G. Penalty for insider trading.– If any insider who, shall be liable to a penalty 2[which shall not be less than ten lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of insider trading, whichever is higher].] 2. Subs.

Detailed explanation-3: -These Regulations may be called the Securities and Exchange Board of India (Insider Trading) (Amendment) Regulations, 2002.

Detailed explanation-4: -Who is Insider? As per Regulation 2(1)(g) of the SEBI (Prohibition of Insider Trading) Regulations, 2015– Insider is a Person who is “Connected” with the company, who could have the Unpublished Price Sensitive information (UPSI) or receive the information from somebody in the company.

Detailed explanation-5: -SEBI does not have the power to wiretap phone calls, a crucial tool used by other jurisdictions such as U.S. in obtaining evidence against insider trading suspects for the purposes of investigation and successful conviction. This power was denied to SEBI on the grounds of ‘misuse’.