Capital market regulator Securities & Exchange Board of India (SEBI) has set up a committee to suggest new rules to curb the rising menace of insider trading activities.

The 16-member committee, which will be headed by former chief justice of Karnataka High Court Justice N. K. Sodhi, will review the existing insider trading norms and suggest new rules.

The existing set of insider trading norms was enacted nearly two-decade ago. As the two decades have passed since the implementation of the SEBI (Prohibition of Insider Trading) Regulations, 1992, many believe that the existing norms are now unable to curb the increasing problem.

Announcing the set up of the committee, SEBI said that countries across the world were shifting their regulatory focus towards curbing insider trading.

The market capital regulator said in a statement, "Sebi seeks review of the extant Insider Trading Regulatory regime in India."

The committee comprises of SEBI officials, legal experts, executives from companies and journalists.

Apart from N. K. Sodhi, the committee comprises Maharashtra Advocate General Darius Khambata, Luthra & Luthra Law Offices' managing partner Rajeev Luthra, SBI Capital Markets's managing director Arundhati Bhattacharya, and Larsen & Toubro Chief Executive Officer K Venkataramanan.