CMA Intermediate · Business Laws and Ethics · Key Managerial Personnel
Which section of the Companies Act, 2013, as originally enacted, prohibited insider trading of securities and has since been omitted w.e.f. 9 February 2018?
Section 195 dealt with the prohibition on insider trading of securities and was omitted with effect from 9 February 2018. Section 194, the neighbouring provision, dealt with forward dealings by directors and key managerial personnel and was omitted on the same date.
- ASection 194
- BSection 195Correct
- CSection 170
- DSection 203
Explanation
Section 195 is headed 'Prohibition on insider trading of securities' and was omitted w.e.f. 9-2-2018. Section 194 dealt with forward dealings, a different prohibition. Sections 170 and 203 are still operative and deal with registers and KMP appointment.
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