Prohibition on forward dealings bars directors and KMP from buying options in company securities, triggering criminal penalties and surrender. Prohibition on forward dealings bars directors and key managerial personnel from acquiring rights or options to call for or make delivery of specified shares or debentures of the company, its holding, subsidiary or associate companies. Contravention attracts criminal penalties and requires surrender of the securities, refusal of registration by the company, and notification to the depository for dematerialised holdings so that the securities remain in the transferor's name.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Prohibition on forward dealings bars directors and KMP from buying options in company securities, triggering criminal penalties and surrender.
Prohibition on forward dealings bars directors and key managerial personnel from acquiring rights or options to call for or make delivery of specified shares or debentures of the company, its holding, subsidiary or associate companies. Contravention attracts criminal penalties and requires surrender of the securities, refusal of registration by the company, and notification to the depository for dematerialised holdings so that the securities remain in the transferor's name.
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