Supreme Court Reaffirms the Irrelevance of Motive Under the 2015 PIT Regulations
September 16, 2026
1. Introduction: A New Paradigm in Insider Trading Jurisprudence
The Supreme Court’s judgment dated August 11, 2026 in Securities and Exchange Board of India (SEBI) v. Rajeev Vasant Sheth (2026) represents a watershed moment in Indian securities law, marking a definitive legislative closing of loopholes that previously allowed insiders to escape liability via subjective justifications. This ruling clarifies the rigorous “conduct-based” liability framework of the SEBI (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations 2015), effectively shifting the burden of proof to the accused once possession of Unpublished Price Sensitive Information (UPSI) is established.
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