SEBI for stricter insider trading norms to build trust

Market regulator SEBI plans to work towards a stricter and prompter enforcement regime using the latest technology, and strengthen insider trading norms, as it seeks to create an atmosphere of trust in the capital markets. Sebi has set up a 16-member committee to suggest new rules on insider trading, which would replace the almost two-decade old set of norms. The committee will examine practices followed in other parts of the world and would submit its recommendations on insider trading by next year.

SEBI also decided to take steps to attract more retail investors to the markets, as more of domestic savings have been channelised into physical assets of late and financial savings have undergone a marked decline. Noting that higher individual investor participation would be a precedent to the development of markets, Sebi said it would continue to take measures to shore up the retail presence in the capital markets.
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