SECURITIES AND EXCHANGE BOARD OF INDIA versus RAJEEV VASANT SHETH & ORS.

Case summary from SCR

Issue for Consideration Whether the Respondents, who admittedly traded (sold) their shareholding in Tara Jewels Limited while in possession of Unpublished Price Sensitive Information, could escape the charge of insider trading under Regulation 4(1) of the PIT Regulations, that the purpose of the sale was a legitimate corporate purpose (i.e., to save the company from being downgraded to a non-performing asset), and whether the Securities Appellate Tribunal (SAT) erred in setting aside the Whole Time Member’s (WTM) order on this ground. Headnotes†