Securities And Exchange Board Of India - Subsection
Section 3(2A) in Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015
(2A)[ The board of directors of a listed company shall make a policy for determination of "legitimate purposes" as a part of "Codes of Fair Disclosure and Conduct" formulated under regulation 8.] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/59, dated 31.12.2018 (w.e.f. 15.1.2015).][Explanation. - For the purpose of illustration, the term "legitimate purpose" shall include sharing of unpublished price sensitive information in the ordinary course of business by an insider with partners, collaborators, lenders, customers, suppliers, merchant bankers, legal advisors, auditors, insolvency professionals or other advisors or consultants, provided that such sharing has not been carried out to evade or circumvent the prohibitions of these regulations.] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/59, dated 31.12.2018 (w.e.f. 15.1.2015).]
