Is promotor of a company disallowed by law to take derivatives positions in the stock of his company .
Every listed entity is required to have an ‘Insider trading policy’ that sets the norms on what’s allowed and what isn’t. Such policy is to be made available to the public. Here’s a copy of Infy’s Insider trading policy: https://www.infosys.com/investors/corporate-governance/Documents/insider-trading-policy.pdf
If you read through, you’ll notice that Infy has disallowed trading in the derivative segment.
That means it is upto the company to decide wheather insider is allowed to take positions in derivative contracts or not . But it is not specifically disallowed by securities law. Correct?
Here’s the link to SEBI’s Insider trading regulations: https://www.sebi.gov.in/legal/regulations/jan-2015/sebi-prohibition-of-insider-trading-regulations-2015-issued-on-15-jan-2015-_28884.html