What are the other areas that SEBI Insider trading rules need to extend to, other than equities?

Most former regulators are of the view that the gradual expansion of the definition of insider trading is required. Mutual Funds can be a start, but it needs to be extended to be meaningful. One common method that is frequently used is to leak out insider data selectively to brokers and fund managers, who take positions and pass on a share in the profits. There have been enough cases in recent times where fund managers and media persons were found guilty of violation of trust. Insider trading needs to cover that.

Ideally, mutual funds must be seen as a start to extend the insider trading argument. That is something trustees were always expected to do, but it was not happening. A classic gap is the trading in derivatives, which is not fully under F&O. Today, insiders can take positions ahead of crucial announcements via out of the money call and puts. This may not be as easy as it sounds and staffing will be an issue. However, this is a necessary step to making insider trading regulations more effective.