Securities Markets Code: how a single word could criminalize every informed investor in India
On a literal reading, an institutional fund manager who trades after studying a company’s publicly released quarterly results possesses information that is, beyond argument, material. If the market has not yet fully priced in those results, the information may also affect the value of the securities. Clause 93(b), read with ‘or,’ reaches that fund manager. Parliament surely does not intend this.
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