MS. SHIVANI GUPTA & ORS. v. SEBI Civil Appeal No.7054/ 7590 of 2021 Date of Judgment: 19/04/22

Abstract

This an appeal decided by a Bench of Hon’ble JJ. Vineet Saran & Aniruddha Bose at Supreme Court of India against a judgement and order of Securities Appellate Tribunal (hereinafter “SAT”].
This case relates to insider trading of securities in a matter of renowned body corporate PC jewellers Ltd. The matter of Insider trading in securities is so sensitive and serious issue in corporate affairs that it carries criminal liability under Companies Act, 20131 as well as Securities Exchange Board Act, 1992. Actually the legislative objectives behind restricting, prohibiting and regulating ‘insider trading’ is that the public money invested in the securities of public limited companies may not be put at risk by the promoters and management of Companies. The simple idea of securities insider trading is that people engaged with the management of the companies’ affairs may not be allowed to manipulate the selling-purchasing of different types of shares, stocks or debenture securities by causing artificial prices’ ups and down in the security market.