When whispers become truth

SEBI ORDER SENSIBLY EXPANDS THE SAFE HARBOUR PROTECTIONS FOR TRADING ON PUBLIC INFORMATION

- SANDEEP PAREKH

NDIA'S INSIDER TRADING enforcement framework has evolved since the overhaul of the insider trading regulations in 2015.Over the past decade, the Securities and Exchange Board of India (Sebi) has refined definitions and concepts and prosecuted insider trading charges with increasing sophistication.

Yet, one question that remained to be clearly answered is, when does information reported in the media about corporate transactions that haven't been formally announced go from being a mere “market rumout” to “generally available information”? This is crucial because if a piece of information is classified as generally available, then a person cannot be penalised for insider trading if they trade using it, regardless of how it was obtained. The idea is that if the information is already publicly available and priced in, then the advantage an insider has over public investors disappears.

Two recent orders passed by Sebi on December 12, 2025, in the Adani Green Energy-SB Energy matter offer the clearest answer to this question yet.