REGULATION OF ISSUERS
Trading by directors, officers and principal share-holders
14. (1) Where any director or officer of an issuer of a listed equity security or any person who is directly or indirectly the beneficial owner of not less than ten per cent of such securities makes any gain by the purchase and sale, or the sale and purchase, of any such security within a period of less than six months, such director or officer or beneficial owner shall make a report and tender the amount of such gain to the issuer:
Provided that nothing in this sub-section shall apply to a security acquired in good faith in satisfaction of a debt previously contracted.
(2) Where a director, officer or beneficial owner fails or neglects to tender, or the issuer fails to recover, any such gain as is mentioned in sub-section (1) within a period of six months after its accrual, or within sixty days of a demand therefore, whichever is later, such gain shall vest in the Commission which may recover the same as an arrear of land revenue.
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Ministry of Law, Justice and Parliamentary Affairs