On August 29, 2018, SEBI passed an order[1] (‘Order’) against Mr. Hariharan Vaidyalingam (‘Respondent’) who had traded in the scrip of Multi Commodity Exchange of India Limited (‘MCX’) while in possession of certain information considered to be price sensitive by SEBI. By way of the Order, SEBI disposed of an interim order passed against the Respondent on August 2, 2017 which inter alia directed the impounding of losses averted by the Respondent while dealing in shares of MCX, given that the Respondent had not actually made a profit or averted a loss pursuant to such trading. However, SEBI did clarify that as to the charge of insider trading, it is irrelevant whether the person indulging in insider trading made a profit/ averted a loss, and therefore directed that the Respondent be restrained from accessing the securities market and be prohibited from buying, selling or otherwise dealing in securities either directly or indirectly for a period of seven years from the date of the Order.

[1] SEBI Order No. WTM/MPB/EFD-DRA-3/33/2018.