Directors and key managerial personnel barred from forward dealings in company securities; breach triggers criminal penalties and surrender obligations. Prohibits directors and key managerial personnel from acquiring forward-dealing rights or options in shares or debentures of the company, its holding, subsidiary or associate companies. Breach attracts imprisonment up to two years and a prescribed fine; persons acquiring securities contrary to the prohibition must surrender them, the company must not register such acquisitions, and depositories must not record dematerialised acquisitions, with such securities remaining in the transferors' names. Relevant securities are defined to include those of the company where the person is a whole-time director or key managerial personnel and of its holding and subsidiary companies.
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.
Directors and key managerial personnel barred from forward dealings in company securities; breach triggers criminal penalties and surrender obligations.
Prohibits directors and key managerial personnel from acquiring forward-dealing rights or options in shares or debentures of the company, its holding, subsidiary or associate companies. Breach attracts imprisonment up to two years and a prescribed fine; persons acquiring securities contrary to the prohibition must surrender them, the company must not register such acquisitions, and depositories must not record dematerialised acquisitions, with such securities remaining in the transferors' names. Relevant securities are defined to include those of the company where the person is a whole-time director or key managerial personnel and of its holding and subsidiary companies.
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