Seeking to overhaul two-decade old set of rules for insider trading in the stock market, Sebi today said it has decided to seek inputs from the general public for drafting the new regulations in this regard.

The public inputs and suggestions have been invited on various aspects of the issue, including on the people and entities that could be considered insider and the level of punishments for violations by insider entities.

The decision to seek public comments has been taken by a high-level committee set up by Sebi last month to review the its Prohibition of Insider trading (PIT) Regulations, 1992 and to recommend suitable amendments.

The first meeting of the High Level Committee to review the PIT Regulations was held on April 12, 2013, Sebi said.

"As part of a consultative process in the exercise of reviewing this significant piece of legislation, the High Level Committee has decided to seek inputs and suggestions from the public, at the outset, on any aspect of the PIT Regulations, which in their opinion may merit a review," it said in a statement.

The regulator said that two decades have passed since the PIT Regulations were notified and there have been several amendments to it since then and "judicial paradigm through case laws have also evolved in India".

"There have been various prominent judgements by Supreme Court, various High Courts and the Securities Appellate Tribunal that have further clarified and redefined the scope and applicability of the PIT Regulations," it added.

These developments, according to Sebi, have given rise to the need to "review and realign the PIT Regulations" and to ensure that they reflect the best practices adopted globally.

Sebi has sought inputs and suggestions from the public in a specific format, available on its website, while detailing the top of the suggestion, changes suggested on it and the reasons for proposing this suggestion.

Sebi said the public can send suggestions and inputs by May 16, 2013.

The 16-member high level committee is headed by N K Sodhi, retired Chief Justice of Karnataka High Court and Former Presiding officer of the Securities Appellate Tribunal.

Some of its other members are Darius Khambata, Advocate General of Maharashtra, Rajeev Luthra, Managing Partner at Luthra & Luthra Law Offices, Larsen & Toubro Chief Executive Officer (CEO) and Managing Director(MD) K Venkataramanan, SBI Capital Markets's MD and CEO Arundhati Bhattacharya.

Besides, two journalists - Mobis Philipose of HT Media Ltd and Menaka Doshi of CNBC TV 18 - are also members of the committee. (Business Standard)