The document discusses corporate governance standards in India following the Satyam scandal. It outlines existing laws and regulations around corporate governance in India, including the Companies Act of 1956, recommendations from industry groups, and SEBI's Clause 49. However, it notes that full compliance with Clause 49 is still lacking in many companies. It argues that independent directors should be held more accountable and that the Satyam scandal highlighted weaknesses in their role and auditors' responsibilities. Tighter rules are needed to strengthen corporate governance standards and better protect shareholders and stakeholders.
This document provides an overview of insider trading regulations and practices in India. It discusses the history behind insider trading regulations, defines key terms like who qualifies as an insider and what constitutes unpublished price sensitive information. It also outlines the regulatory aspects of prohibiting insider trading in India according to SEBI regulations. Finally, it summarizes some notable insider trading cases in India involving companies like HLL, Rakesh Agarwal and Samir Arora.
Insider trading involves trading in a company's securities using material, non-public information. It can include directors, employees or other connected persons trading based on confidential corporate info. The US was first to tackle insider trading through the Securities Exchange Act of 1984. In India, SEBI regulations from 1992 define "insiders" as connected persons who may have access to unpublished price sensitive info. The regulations prohibit insiders from trading using such info and require listed companies to implement codes of conduct regarding disclosure practices. Violations can result in heavy financial penalties or criminal prosecution.
The document summarizes the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015. Some key points:
- The regulations came into force on May 13, 2015 and contain 5 chapters covering preliminary aspects, restrictions on insider trading, disclosure requirements, codes of conduct, and miscellaneous items.
- Important definitions include connected person, generally available information, insider, and unpublished price sensitive information.
- Insiders are restricted from trading based on unpublished price sensitive information or communicating such information, except on a need-to-know basis.
- Exceptions allow for communication of unpublished information for transactions approved as being in the company's best interest, provided it is disclosed to the public afterwards
The document discusses insider trading regulations in the EU, UK, and Sweden. It defines insider information and persons possessing insider information such as PDMRs and related parties. PDMR duties include restrictions during closed periods and disclosure requirements. Insider dealing is prohibited, as is unlawful disclosure of insider information. Exemptions exist for legitimate behavior. Penalties for violations include fines, bans, and public warnings. The Financial Conduct Authority regulates financial markets in the UK. Case studies are provided on prosecuted instances of insider trading.
Insider Trading-Overview & Objective : A presentation at Indian Institute of Corporate Affairs by Mr. Manoj Kumar, Assistant Vice President, Corporate Professionals.
Key Highlights:
What is Insider Trading?
Insider trading evolution and theories : International Perspective, Misappropriation Theory, Privileged Information, Insider Trading & Corporate Governance, Indian Perspective
This document is a research paper on insider trading prepared by CA Mayank Mittal. It defines insider trading as dealing in a company's securities using non-public, price-sensitive information for profit or loss. The paper discusses the history of regulating insider trading in India and defines who qualifies as an insider. It outlines the negative impacts of insider trading, governing regulations and penalties. The paper concludes that proper internal controls are needed to prevent insider trading and protect organizations and market integrity.
The document discusses insider trading regulations in India. It defines key terms like insider trading, connected persons, unpublished price sensitive information, trading window, and penalties for violations. It summarizes SEBI's powers to investigate complaints and take action against persons found guilty of insider trading under Indian law. Model codes of conduct are also outlined that listed companies must follow to prevent insider trading.
This document is the report of the High Level Committee to Review the SEBI (Prohibition of Insider Trading) Regulations, 1992. It was chaired by Justice N.K. Sodhi, former Chief Justice.
The committee was tasked with reviewing the existing insider trading regulations and drafting new proposed regulations. It invited public comments and reviewed regulations from other jurisdictions. It then deliberated and drafted the new Proposed Regulations contained in Part III of the report.
The report explains the committee's methodology, acknowledges contributions, outlines the key features and recommendations of the new regulations, and provides the draft text of the Proposed Regulations along with explanatory notes on the legislative intent of each provision. The committee recommends notifying
This document provides an overview of insider trading regulations and practices in India. It discusses the history behind insider trading regulations, defines key terms like who qualifies as an insider and what constitutes unpublished price sensitive information. It also outlines the regulatory aspects of prohibiting insider trading in India according to SEBI regulations. Finally, it summarizes some notable insider trading cases in India involving companies like HLL, Rakesh Agarwal and Samir Arora.
Insider trading involves trading in a company's securities using material, non-public information. It can include directors, employees or other connected persons trading based on confidential corporate info. The US was first to tackle insider trading through the Securities Exchange Act of 1984. In India, SEBI regulations from 1992 define "insiders" as connected persons who may have access to unpublished price sensitive info. The regulations prohibit insiders from trading using such info and require listed companies to implement codes of conduct regarding disclosure practices. Violations can result in heavy financial penalties or criminal prosecution.
The document summarizes the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015. Some key points:
- The regulations came into force on May 13, 2015 and contain 5 chapters covering preliminary aspects, restrictions on insider trading, disclosure requirements, codes of conduct, and miscellaneous items.
- Important definitions include connected person, generally available information, insider, and unpublished price sensitive information.
- Insiders are restricted from trading based on unpublished price sensitive information or communicating such information, except on a need-to-know basis.
- Exceptions allow for communication of unpublished information for transactions approved as being in the company's best interest, provided it is disclosed to the public afterwards
The document discusses insider trading regulations in the EU, UK, and Sweden. It defines insider information and persons possessing insider information such as PDMRs and related parties. PDMR duties include restrictions during closed periods and disclosure requirements. Insider dealing is prohibited, as is unlawful disclosure of insider information. Exemptions exist for legitimate behavior. Penalties for violations include fines, bans, and public warnings. The Financial Conduct Authority regulates financial markets in the UK. Case studies are provided on prosecuted instances of insider trading.
Insider Trading-Overview & Objective : A presentation at Indian Institute of Corporate Affairs by Mr. Manoj Kumar, Assistant Vice President, Corporate Professionals.
Key Highlights:
What is Insider Trading?
Insider trading evolution and theories : International Perspective, Misappropriation Theory, Privileged Information, Insider Trading & Corporate Governance, Indian Perspective
This document is a research paper on insider trading prepared by CA Mayank Mittal. It defines insider trading as dealing in a company's securities using non-public, price-sensitive information for profit or loss. The paper discusses the history of regulating insider trading in India and defines who qualifies as an insider. It outlines the negative impacts of insider trading, governing regulations and penalties. The paper concludes that proper internal controls are needed to prevent insider trading and protect organizations and market integrity.
The document discusses insider trading regulations in India. It defines key terms like insider trading, connected persons, unpublished price sensitive information, trading window, and penalties for violations. It summarizes SEBI's powers to investigate complaints and take action against persons found guilty of insider trading under Indian law. Model codes of conduct are also outlined that listed companies must follow to prevent insider trading.
This document is the report of the High Level Committee to Review the SEBI (Prohibition of Insider Trading) Regulations, 1992. It was chaired by Justice N.K. Sodhi, former Chief Justice.
The committee was tasked with reviewing the existing insider trading regulations and drafting new proposed regulations. It invited public comments and reviewed regulations from other jurisdictions. It then deliberated and drafted the new Proposed Regulations contained in Part III of the report.
The report explains the committee's methodology, acknowledges contributions, outlines the key features and recommendations of the new regulations, and provides the draft text of the Proposed Regulations along with explanatory notes on the legislative intent of each provision. The committee recommends notifying
Principle Based Regulation
Legislative Notes
Provides specific defenses
Introduced Trading Plans
Crucial Role for Compliance Officer
Everybody connected directly or indirectly is covered
What is Unpublished Price Sensitive Information?
What is the role of Compliance Officer in implementing this Regulations.
This document summarizes key aspects of the new Prohibition of Insider Trading Regulation introduced by SEBI in 2015, including expanded definitions. It notes that the regulation aims to close loopholes, address changes in business and technology, and curb rampant insider trading by giving SEBI more power. Key definitions expanded include "connected person" to include a wide variety of individuals who may have access to unpublished price sensitive information, and "insider" to include anyone with access to such information. The definition of unpublished price sensitive information is also expanded beyond financial results to include other strategic business information.
The document discusses the evolution of insider trading regulations in India. It summarizes the key events and reports that led to the notification of the SEBI (Prohibition of Insider Trading) Regulations, 2015, including the constitution of the Sodhi Committee in 2013, its report to SEBI, and SEBI's approval of new regulations in 2014. The regulations, effective from May 2015, define insider trading and key terms like "insider", "connected person", and "unpublished price sensitive information (UPSI)". The regulations place restrictions on communication and trading by insiders and require various disclosures and maintenance of registers by listed companies.
The document summarizes an insider trading case involving Hindustan Lever Limited (HLL), Unit Trust of India (UTI), Brooke Bond Lipton India Limited (BBLIL), and the Securities and Exchange Board of India (SEBI). HLL was planning a merger with BBLIL and bought shares of BBLIL from UTI before announcing the merger. SEBI accused HLL of insider trading but the charges were later absolved. The key issues debated were whether the merger information was unpublished, whether HLL gained unfair advantage, and whether the response absolving HLL was justified.
The new SEBI (Prohibition of Insider Trading) Regulations, 2015 were notified on January 15, 2015 to tighten regulations around insider trading. Key aspects of the new regulations include expanded definitions of "insider" and "connected persons", prohibitions on trading based on unpublished price sensitive information, increased responsibilities for compliance officers, requirements for initial and continual shareholding disclosures, and penalties for non-compliance. The regulations aim to align India's insider trading framework with global standards and plug existing loopholes.
Insider trading involves trading in the securities of a company by individuals with access to non-public, material information about that company. Insiders include people connected to the company like directors, employees and family members. They are prohibited from trading based on unpublished price sensitive information. Insider trading regulations define insiders, unpublished price sensitive information, disclosure requirements and penalties for non-compliance. Violations are punishable by monetary penalties, imprisonment or both.
A review of insider trading law, with emphasis on its application to recent cases involving hedge funds. Reviews Preet Bharara’s scorecard, the Galleon case, materiality and the “Mosaic Theory," and tipping chains.
SEBI introduced regulations in 1992 to govern insider trading in India and prohibit the use of unpublished price sensitive information for securities trading. Insiders such as employees who have access to such information and connected persons such as family members cannot misuse this data for financial gain. Saira and her husband Sahil would be found guilty of insider trading as she shared non-public information about her company's acquisition plans with him, and he subsequently traded on this information for profit without following necessary pre-clearance procedures. SEBI regulations aim to promote fair securities markets and prevent information asymmetries through disclosure requirements and penalties for non-compliance, including heavy fines and imprisonment.
Insider Trading-Analysis of Provisions, Offences and Penalties: A presentation at Indian Institute of Corporate Affairs by Mr. Manoj Kumar, Assistant Vice President, Corporate Professionals.
Key Highlights: Who is and Insider?, Insider Regulation 2(e), explanation to connected person, regulation 2(h), What Is Price Sensitive Information, OFFICER OF A COMPANY – REGULATION 2(g), Procedure for Investigation…
WHAT IS INSIDER TRADING???
Insider trading is dealing in securities of a listed company by any person who has knowledge of material “inside” information which is not known to the general public.
WHO IS INSIDER???
Insider is the person who is “connected” with the company , who could have the unpublished price sensitive information or receive the information from somebody in the company.
CONNECTED PERSON WITH DETAILED CLARIFICATION
Any person who is or has been associated with company, in any manner, during the six months prior to the concerned act:
An immediate relative to the connected person.
A banker of the company.
An official of stock Exchange or of clearing corporation.
A holding/associate/subsidiary company.
WHAT INCLUDES TRADING ?
WHO ARE INSIDER TRADERS?
Corporate officers, directors ,and employees who traded the corporations securities after learning of significant, confidential corporate developments.
Friends, business associates, family members and employees of law, banking and brokerage firms who were given such information to provide services to the corporation whose securities they traded.
GOVERNING REGULATIONS
Securities & Exchange Board Of India Act,1992
SEBI (Insider Trading) Regulations,1992
SEBI (PIT) (Amendment) Regulations,2002
SEBI (PIT) (Amendment) Regulations,2003
SEBI (PIT) (Amendment) Regulations,2008
SEBI (PIT) (Amendment) Regulations,2011
HISTORY BEHIND INSIDER TRADING IN INDIA
Insider trading in India was unhindered in its 130 year old stock market till about 1970.
In 1979,the Sachar Committee recommended amendments to the companies Act,1956 to restrict prohibit the dealings of employees. Penalties were also suggested to prevent the insider trading.
In 1989 the Abid Hussain Committee recommended that the insider trading activities may be penalized by civil and criminal proceedings and also suggested the SEBI formulate the regulations and governing codes to prevent unfair dealings.
UNPUBLISHED PRICE SENSITIVE INFORMATION
REGULATORY ASPECTS OF PROHIBITION OF INSIDER TRADING
SEBI prohibition of Insider Trading regulation 1995.
Section 11(2) E of companies act 1956 prohibits the insider trading.
WHY THERE IS NEED FOR PROHIBITION OF INSIDER TRADING???
As per SEBI the Prohibition of Insider Trading is required to make securities market:
Fair and Transparent.
To have a Level Playing Field for all the participants in the market.
For free flow of information and avoid information asymmetry.
CASE STUDY
HLL – BBLIL MERGER CASE
HLL-BROOKBOND LIPTON INDIA LTD
The case primarily involves 4 pa
This document discusses the concept of insider trading, providing examples and outlining the key dimensions. Insider trading involves someone connected to a company trading securities based on non-public information for personal gain at the expense of others. It gives the example of HLL purchasing shares in BBLIL weeks before announcing their merger. Insider trading undermines market integrity and investor confidence. While unethical, it is also illegal in most countries as it involves the breach of trust and unfair exploitation of information asymmetries.
This document analyzes insider dealing laws in Sri Lanka by comparing them to laws in the US and UK. It defines insider dealing and explains why it should be prohibited to maintain fairness in share markets. The key Sri Lankan law that prohibits insider dealing is the Securities and Exchange Commission Act of 1987, though its definitions of "insider" and "price sensitive information" lack clarity. The document recommends amendments to strengthen prohibitions, expand liability, improve definitions, and increase enforcement of insider dealing laws in Sri Lanka.
This document summarizes a case study involving SEBI's allegations of insider trading against HLL for purchasing shares of BBLIL before publicly announcing a merger. The key points discussed are: SEBI's position that HLL was an insider with non-public information; HLL's defense that it was a party to the merger negotiations and the information was generally known; and the Ministry of Finance ultimately ruled that HLL was not guilty as it did not gain any unfair advantage from the share purchase.
Insider trading involves buying or selling securities based on non-public information by corporate insiders or other individuals with access to such information. It is illegal and a breach of fiduciary duty as it gives unfair advantage to traders who have access to insider information not available to the general public. A case study on insider trading charges against Hindustan Unilever Limited regarding its merger with Brooke Bond Lipton India Ltd is discussed. While SEBI charged HLL with insider trading, the Union Finance Ministry and HLL argued the merger information was widely reported and therefore "generally known".
Insider trading ( case study : HLL v/s SEBI )Hemita Dua
This document discusses insider trading and the case of Hindustan Unilever Limited vs SEBI. It provides details of the legal controversy where SEBI charged HUL with insider trading for purchasing shares in Brooke Bond Lipton India Ltd. two weeks before announcing their merger. SEBI directed HUL to pay compensation to UTI and initiated criminal proceedings against common directors, though HUL appealed and the appellate authority ruled in its favor. The document also covers advantages and disadvantages of insider trading, and the need to regulate it to maintain trust and prevent market manipulation.
Insider trading is defined as buying or selling a company's stock using non-public, insider information that could significantly impact the stock price. It is considered unethical and illegal because it gives unfair advantage through theft of private information. While some argue it ensures accurate stock prices or does not directly harm others, critics say the information is not the insider's to use and it increases stock trading costs and reduces market liquidity, efficiency, and risk-spreading. Studies show insider trading ultimately harms all market participants and society.
This document discusses insider trading and the laws around it. It defines an insider as someone connected to a company who has access to non-public information, and defines insider trading as using that information to profit in stock trades. It outlines that insider trading is illegal according to SEBI regulations and describes penalties for participating in insider trading.
Related Party Transactions: Disclosure & TransparencyPavan Kumar Vijay
It deals with the concept and need of disclosures and transparency in corporate affairs. It further enumerates the provisions of related party transactions and insider trading.
HLL (Hindustan Unilever Limited) purchased shares of Brooke Bond Lipton India Limited (BBLIL) prior to publicly announcing their merger. The Securities and Exchange Board of India (SEBI) suspected insider trading and issued a notice to HLL. HLL claimed they did not intend to profit from the transaction and cancelled the BBLIL shares after the merger to strengthen Unilever's shareholdings. SEBI was unable to prove their case for prosecution and their ruling suffered from procedural lapses and exceeded their jurisdiction. The merger was price sensitive information but HLL argued it was widely speculated on before the formal announcement. Ultimately, it was unclear if insider trading occurred but the transaction violated principles of
The document discusses key concepts in US and Indonesian competition law and antitrust legislation. It explains that antitrust laws seek to promote competition by prohibiting anticompetitive business practices that harm consumers. Major US antitrust laws discussed include the Sherman Act of 1890, Clayton Act of 1914, and Federal Trade Commission Act of 1914. The Sherman Act prohibits anticompetitive contracts and monopolies. The Clayton Act addresses early-stage anticompetitive practices, while the FTC Act established the Federal Trade Commission to enforce antitrust laws. The document also discusses key Indonesian competition laws and defines concepts like per se illegality versus the rule of reason analysis.
Financial Market Abuse & Fraud. A US and UK Perspective.Mushtaq Dost FICA
The document discusses insider trading and market abuse. It provides examples of behaviors that can constitute market abuse, including:
1) An employee who buys shares in their company before public knowledge of an imminent takeover bid, based on private information, giving them an unfair advantage over others in the market.
2) An employee who discloses private information about an imminent takeover to a friend, allowing the friend to also profit unfairly from inside knowledge.
3) Selling shares based on private information about an upcoming loss of a major contract, again providing insider knowledge to the detriment of others trading.
4) Manipulating transactions by purchasing a large number of shares to artificially inflate the price at the
Principle Based Regulation
Legislative Notes
Provides specific defenses
Introduced Trading Plans
Crucial Role for Compliance Officer
Everybody connected directly or indirectly is covered
What is Unpublished Price Sensitive Information?
What is the role of Compliance Officer in implementing this Regulations.
This document summarizes key aspects of the new Prohibition of Insider Trading Regulation introduced by SEBI in 2015, including expanded definitions. It notes that the regulation aims to close loopholes, address changes in business and technology, and curb rampant insider trading by giving SEBI more power. Key definitions expanded include "connected person" to include a wide variety of individuals who may have access to unpublished price sensitive information, and "insider" to include anyone with access to such information. The definition of unpublished price sensitive information is also expanded beyond financial results to include other strategic business information.
The document discusses the evolution of insider trading regulations in India. It summarizes the key events and reports that led to the notification of the SEBI (Prohibition of Insider Trading) Regulations, 2015, including the constitution of the Sodhi Committee in 2013, its report to SEBI, and SEBI's approval of new regulations in 2014. The regulations, effective from May 2015, define insider trading and key terms like "insider", "connected person", and "unpublished price sensitive information (UPSI)". The regulations place restrictions on communication and trading by insiders and require various disclosures and maintenance of registers by listed companies.
The document summarizes an insider trading case involving Hindustan Lever Limited (HLL), Unit Trust of India (UTI), Brooke Bond Lipton India Limited (BBLIL), and the Securities and Exchange Board of India (SEBI). HLL was planning a merger with BBLIL and bought shares of BBLIL from UTI before announcing the merger. SEBI accused HLL of insider trading but the charges were later absolved. The key issues debated were whether the merger information was unpublished, whether HLL gained unfair advantage, and whether the response absolving HLL was justified.
The new SEBI (Prohibition of Insider Trading) Regulations, 2015 were notified on January 15, 2015 to tighten regulations around insider trading. Key aspects of the new regulations include expanded definitions of "insider" and "connected persons", prohibitions on trading based on unpublished price sensitive information, increased responsibilities for compliance officers, requirements for initial and continual shareholding disclosures, and penalties for non-compliance. The regulations aim to align India's insider trading framework with global standards and plug existing loopholes.
Insider trading involves trading in the securities of a company by individuals with access to non-public, material information about that company. Insiders include people connected to the company like directors, employees and family members. They are prohibited from trading based on unpublished price sensitive information. Insider trading regulations define insiders, unpublished price sensitive information, disclosure requirements and penalties for non-compliance. Violations are punishable by monetary penalties, imprisonment or both.
A review of insider trading law, with emphasis on its application to recent cases involving hedge funds. Reviews Preet Bharara’s scorecard, the Galleon case, materiality and the “Mosaic Theory," and tipping chains.
SEBI introduced regulations in 1992 to govern insider trading in India and prohibit the use of unpublished price sensitive information for securities trading. Insiders such as employees who have access to such information and connected persons such as family members cannot misuse this data for financial gain. Saira and her husband Sahil would be found guilty of insider trading as she shared non-public information about her company's acquisition plans with him, and he subsequently traded on this information for profit without following necessary pre-clearance procedures. SEBI regulations aim to promote fair securities markets and prevent information asymmetries through disclosure requirements and penalties for non-compliance, including heavy fines and imprisonment.
Insider Trading-Analysis of Provisions, Offences and Penalties: A presentation at Indian Institute of Corporate Affairs by Mr. Manoj Kumar, Assistant Vice President, Corporate Professionals.
Key Highlights: Who is and Insider?, Insider Regulation 2(e), explanation to connected person, regulation 2(h), What Is Price Sensitive Information, OFFICER OF A COMPANY – REGULATION 2(g), Procedure for Investigation…
WHAT IS INSIDER TRADING???
Insider trading is dealing in securities of a listed company by any person who has knowledge of material “inside” information which is not known to the general public.
WHO IS INSIDER???
Insider is the person who is “connected” with the company , who could have the unpublished price sensitive information or receive the information from somebody in the company.
CONNECTED PERSON WITH DETAILED CLARIFICATION
Any person who is or has been associated with company, in any manner, during the six months prior to the concerned act:
An immediate relative to the connected person.
A banker of the company.
An official of stock Exchange or of clearing corporation.
A holding/associate/subsidiary company.
WHAT INCLUDES TRADING ?
WHO ARE INSIDER TRADERS?
Corporate officers, directors ,and employees who traded the corporations securities after learning of significant, confidential corporate developments.
Friends, business associates, family members and employees of law, banking and brokerage firms who were given such information to provide services to the corporation whose securities they traded.
GOVERNING REGULATIONS
Securities & Exchange Board Of India Act,1992
SEBI (Insider Trading) Regulations,1992
SEBI (PIT) (Amendment) Regulations,2002
SEBI (PIT) (Amendment) Regulations,2003
SEBI (PIT) (Amendment) Regulations,2008
SEBI (PIT) (Amendment) Regulations,2011
HISTORY BEHIND INSIDER TRADING IN INDIA
Insider trading in India was unhindered in its 130 year old stock market till about 1970.
In 1979,the Sachar Committee recommended amendments to the companies Act,1956 to restrict prohibit the dealings of employees. Penalties were also suggested to prevent the insider trading.
In 1989 the Abid Hussain Committee recommended that the insider trading activities may be penalized by civil and criminal proceedings and also suggested the SEBI formulate the regulations and governing codes to prevent unfair dealings.
UNPUBLISHED PRICE SENSITIVE INFORMATION
REGULATORY ASPECTS OF PROHIBITION OF INSIDER TRADING
SEBI prohibition of Insider Trading regulation 1995.
Section 11(2) E of companies act 1956 prohibits the insider trading.
WHY THERE IS NEED FOR PROHIBITION OF INSIDER TRADING???
As per SEBI the Prohibition of Insider Trading is required to make securities market:
Fair and Transparent.
To have a Level Playing Field for all the participants in the market.
For free flow of information and avoid information asymmetry.
CASE STUDY
HLL – BBLIL MERGER CASE
HLL-BROOKBOND LIPTON INDIA LTD
The case primarily involves 4 pa
This document discusses the concept of insider trading, providing examples and outlining the key dimensions. Insider trading involves someone connected to a company trading securities based on non-public information for personal gain at the expense of others. It gives the example of HLL purchasing shares in BBLIL weeks before announcing their merger. Insider trading undermines market integrity and investor confidence. While unethical, it is also illegal in most countries as it involves the breach of trust and unfair exploitation of information asymmetries.
This document analyzes insider dealing laws in Sri Lanka by comparing them to laws in the US and UK. It defines insider dealing and explains why it should be prohibited to maintain fairness in share markets. The key Sri Lankan law that prohibits insider dealing is the Securities and Exchange Commission Act of 1987, though its definitions of "insider" and "price sensitive information" lack clarity. The document recommends amendments to strengthen prohibitions, expand liability, improve definitions, and increase enforcement of insider dealing laws in Sri Lanka.
This document summarizes a case study involving SEBI's allegations of insider trading against HLL for purchasing shares of BBLIL before publicly announcing a merger. The key points discussed are: SEBI's position that HLL was an insider with non-public information; HLL's defense that it was a party to the merger negotiations and the information was generally known; and the Ministry of Finance ultimately ruled that HLL was not guilty as it did not gain any unfair advantage from the share purchase.
Insider trading involves buying or selling securities based on non-public information by corporate insiders or other individuals with access to such information. It is illegal and a breach of fiduciary duty as it gives unfair advantage to traders who have access to insider information not available to the general public. A case study on insider trading charges against Hindustan Unilever Limited regarding its merger with Brooke Bond Lipton India Ltd is discussed. While SEBI charged HLL with insider trading, the Union Finance Ministry and HLL argued the merger information was widely reported and therefore "generally known".
Insider trading ( case study : HLL v/s SEBI )Hemita Dua
This document discusses insider trading and the case of Hindustan Unilever Limited vs SEBI. It provides details of the legal controversy where SEBI charged HUL with insider trading for purchasing shares in Brooke Bond Lipton India Ltd. two weeks before announcing their merger. SEBI directed HUL to pay compensation to UTI and initiated criminal proceedings against common directors, though HUL appealed and the appellate authority ruled in its favor. The document also covers advantages and disadvantages of insider trading, and the need to regulate it to maintain trust and prevent market manipulation.
Insider trading is defined as buying or selling a company's stock using non-public, insider information that could significantly impact the stock price. It is considered unethical and illegal because it gives unfair advantage through theft of private information. While some argue it ensures accurate stock prices or does not directly harm others, critics say the information is not the insider's to use and it increases stock trading costs and reduces market liquidity, efficiency, and risk-spreading. Studies show insider trading ultimately harms all market participants and society.
This document discusses insider trading and the laws around it. It defines an insider as someone connected to a company who has access to non-public information, and defines insider trading as using that information to profit in stock trades. It outlines that insider trading is illegal according to SEBI regulations and describes penalties for participating in insider trading.
Related Party Transactions: Disclosure & TransparencyPavan Kumar Vijay
It deals with the concept and need of disclosures and transparency in corporate affairs. It further enumerates the provisions of related party transactions and insider trading.
HLL (Hindustan Unilever Limited) purchased shares of Brooke Bond Lipton India Limited (BBLIL) prior to publicly announcing their merger. The Securities and Exchange Board of India (SEBI) suspected insider trading and issued a notice to HLL. HLL claimed they did not intend to profit from the transaction and cancelled the BBLIL shares after the merger to strengthen Unilever's shareholdings. SEBI was unable to prove their case for prosecution and their ruling suffered from procedural lapses and exceeded their jurisdiction. The merger was price sensitive information but HLL argued it was widely speculated on before the formal announcement. Ultimately, it was unclear if insider trading occurred but the transaction violated principles of
The document discusses key concepts in US and Indonesian competition law and antitrust legislation. It explains that antitrust laws seek to promote competition by prohibiting anticompetitive business practices that harm consumers. Major US antitrust laws discussed include the Sherman Act of 1890, Clayton Act of 1914, and Federal Trade Commission Act of 1914. The Sherman Act prohibits anticompetitive contracts and monopolies. The Clayton Act addresses early-stage anticompetitive practices, while the FTC Act established the Federal Trade Commission to enforce antitrust laws. The document also discusses key Indonesian competition laws and defines concepts like per se illegality versus the rule of reason analysis.
Financial Market Abuse & Fraud. A US and UK Perspective.Mushtaq Dost FICA
The document discusses insider trading and market abuse. It provides examples of behaviors that can constitute market abuse, including:
1) An employee who buys shares in their company before public knowledge of an imminent takeover bid, based on private information, giving them an unfair advantage over others in the market.
2) An employee who discloses private information about an imminent takeover to a friend, allowing the friend to also profit unfairly from inside knowledge.
3) Selling shares based on private information about an upcoming loss of a major contract, again providing insider knowledge to the detriment of others trading.
4) Manipulating transactions by purchasing a large number of shares to artificially inflate the price at the
Collective bargaining is a technique where disputes over employment conditions are resolved through negotiation rather than coercion. The Industrial Disputes Act of 1947 aims to achieve social justice through collective bargaining. Outsiders who lead unions often have little knowledge of the industry or workers' issues, making employers reluctant to negotiate with them. While a ban on outsiders could weaken unions, their influence can undermine collective bargaining when unions are politically affiliated rather than prioritizing workers' interests. Reform is needed to reduce political influence and strengthen internal union leadership focused on workers.
Discount and finance house of india ltdLavesh Soni
DFHI was established in 1988 by the Reserve Bank of India and public sector banks to develop the money markets and provide liquidity. It deals in various money market instruments like treasury bills, certificates of deposit, and commercial paper. DFHI aims to balance liquidity, promote secondary markets, integrate regional markets, and provide investment opportunities. It allows entities without an SGL account to invest in government securities through its constituent SGL account facility. DFHI is managed by a board representing shareholders like RBI, public banks, and financial institutions.
DFHI was formed in 1988 as a subsidiary of SBI to develop the Indian money market and provide liquidity to money market instruments. It commenced operations with Rs. 200 crores in paid-up capital contributed by RBI, public sector banks, and financial institutions. DFHI's main objectives are to increase transactions in the money market and facilitate short-term liquidity management. It deals in government securities, treasury bills, certificates of deposit, commercial papers, and various call/notice money market instruments. DFHI plays an important role in discounting, purchasing, and selling these instruments to promote secondary market activity and improve money market liquidity.
The document summarizes an insider trading case involving four parties - UTI, HLL, BBLIL, and SEBI. HLL planned to merge with BBLIL, which it informed exchanges of on April 19, 1996. Before the merger, HLL bought shares of BBLIL from UTI. SEBI accused HLL of insider trading, but the finance ministry later absolved HLL of charges. The key issues were whether HLL was an insider, if it had non-public information, and if it gained unfair advantage. While SEBI argued HLL was an insider, the information was non-public, and it gained, HLL counters the information was public and it did not unfairly benefit
Collective bargaining is a process where the terms and conditions of employment are negotiated by workers' representatives and employers. It allows both parties to act as groups rather than individuals. There are three main concepts of collective bargaining: the marketing concept views workers as commodities for the market; the government concept sees it as a rule-making process; and the industrial relations concept focuses on participative decision-making between employers and employees. Collective bargaining establishes common ground between parties and helps determine wages, hours, and other terms of employment through bilateral negotiations.
This document discusses collective bargaining, which is defined as a process where worker representatives and employer representatives negotiate terms of employment. It describes key features of collective bargaining such as being a continuous process that establishes stable relationships. The document outlines importance of collective bargaining to employees, employers, and society, including increased worker bargaining power and promotion of industrial peace. It also discusses types of bargaining, prerequisites, the bargaining process, levels of bargaining, problems, and conditions for success.
This document discusses different types of collective bargaining:
- Distributive/conjunctive bargaining involves negotiations over economic issues like wages where one side wins and the other loses.
- Cooperative/integrative bargaining aims for win-win solutions where both sides meet each other's needs.
- Productivity bargaining links wages to productivity measures.
- Composite bargaining includes negotiations over work conditions in addition to wages.
- Concessionary bargaining occurs when unions give concessions to management, such as during an economic crisis, to save jobs.
Preferential trade agreements (PTAs) are trade pacts that reduce tariffs for member countries. PTAs are the first stage of economic integration, reducing trade barriers between participating nations. While they lower tariffs among members, external tariffs remain. PTAs can have benefits like trade creation, but also costs like trade diversion if members shift imports away from more efficient non-member producers. The proliferation of Asia-Pacific PTAs increases potential for both regional trade growth and trade diversion given some countries' high dispersed external tariffs.
The document provides an overview of derivatives markets, including the key terms and participants. It discusses how derivatives help transfer and hedge risks, facilitate price discovery, and catalyze economic activity. The main types of derivatives are forwards, futures, swaps, and options. Forwards and swaps are over-the-counter derivatives privately negotiated between parties, while futures and options are exchange-traded standardized contracts. Hedgers use derivatives to offset price risks, while speculators and arbitrageurs take positions to profit from price movements.
Collective bargaining is a process between employers and employees to reach agreements on work conditions. It aims to reach collective agreements on issues like pay, hours, training, and safety. It involves negotiations between employee representatives and employers to determine employment conditions. The result is a collective bargaining agreement. The collective bargaining process involves five steps - preparing negotiation teams, discussing ground rules, proposing positions, bargaining details, and finalizing a settlement agreement.
This document provides an overview of collective bargaining, including its definition, evolution, types, process, agreements, levels, conditions for success, trends, and perceptions. Collective bargaining is a negotiation process between labor unions and employers to determine wages, hours, rules and other conditions of employment. It aims to find common ground to reconcile conflicting interests through proposals and counterproposals. The key aspects covered include preparation, discussion, proposals, bargaining and settlement. [/SUMMARY]
The document discusses corporate governance and research methodology. It defines corporate governance and discusses its key stakeholders. The objectives of the research are outlined, which are to analyze corporate governance practices of BSE-30 companies over 5 years and evaluate the importance of corporate governance from investors' and company secretaries' viewpoints. The research methodology discusses the population, sample size, sampling method, and data sources for the research.
This document discusses corporate governance in India. It begins by providing context on the state of corporate governance in India prior to reforms, noting issues like managing agency systems, licensing requirements, corruption, and ineffective oversight. It then discusses current weaknesses in corporate governance in India, including related party transactions, board independence, and enforcement. The document concludes by recommending improvements like increasing board independence, separating CEO and chairperson roles, strengthening shareholder rights and enforcement, and improving transparency and disclosure.
This document discusses corporate governance in India. It notes that in the decades after independence, India adopted socialist policies that stifled corporate growth and bred corruption. The situation deteriorated further as tax rates encouraged creative accounting and DFIs provided loans but had little oversight over companies. Overall, corporate governance was weak in India with non-transparent practices and a lack of accountability.
- A corporation is an organization created by shareholders who have ownership. The board of directors oversees management.
- Corporate governance deals with how organizations are directed and controlled. It focuses on internal and external structures to monitor actions of management and directors.
- Good corporate governance objectives include strengthening oversight, ensuring board independence and skills, establishing ethics codes, safeguarding financial reporting, managing risk, and recognizing shareholder needs.
This document discusses creating a shareholders trust in India to offset management control. It proposes establishing a trust under the Indian Trust Act of 1882, with management acting as trustees and shareholders as beneficiaries. This would make management impartial and accountable to shareholders. Currently, shareholders have little power while management has full control. A trust could guarantee shareholders a return and prevent losses, while making management answerable. It would give investors greater rights and encourage more investment in companies.
Corporate governance compliance practices of indian companiesAlexander Decker
This document summarizes the evolution of corporate governance practices in India. It discusses several committees that were formed starting in the late 1990s to early 2000s to develop codes and recommendations around improving corporate governance for Indian companies. These included the CII Code in 1998, the Birla Committee in 1999, the Naresh Chandra Committee in 2002, and the Narayana Murthy Committee in 2003. The recommendations from these committees helped establish Clause 49 of the listing agreement, which aimed to enhance standards of corporate governance for listed companies in India. The document also briefly reviews some prior literature that has analyzed corporate governance reporting practices among Indian firms and the relationship between adopting Clause 49 and company volatility/returns.
Corporate Governance - A Broader Perspectiveiosrjce
In this paper it is argued that the notion of market-based corporate governance approach should be
broadened to include the problem of owner-controlled firms and large block-holders and should be generalized
to a model of multilateral negotiations and influence-seeking among a number of different stakeholders. In
practice such a model should incorporate checks and balances between various stakeholders and outside
constraints and must take into account how the political and legal system of a country affects this balance. In
fact, even if there is theoretical reason to believe that ownership with its incumbent benefits and costs belongs
to equity, this view is not dominant in most economies outside United Kingdom and United States of America.
The broader notion of corporate governance offers hope for understanding better the developing economies in
particular - and other economies in general - where anonymous stock markets are not likely to promote the
necessary entrepreneurial activity and corporate restructuring. It suggests that other mechanisms, such as
product market competition, peer pressure, or labor market activity, may compensate for this weakness, or more
realistically, may be more promising targets for legal or political reform than the stock market.
This document provides an overview of corporate governance and discusses the importance of the auditor's role. It addresses:
- The growth of corporate governance in response to globalization and economic reforms.
- Factors that have accelerated globalization like standardization, technology advances, and privatization.
- How corporate governance principles aim to protect shareholder rights and ensure transparency.
- The problem of improving auditor quality performance to better support corporate governance goals like accountability.
- The research objectives of emphasizing the impact of stronger auditing in activating corporate governance.
The document presents the research plan which includes exploring previous studies, conceptual frameworks, the comptroller's mechanisms, and results/recommendations. The importance
Corporate governance is important for companies to protect shareholder interests and manage risks. It involves transparency, accountability, and oversight between key stakeholders like shareholders, management, and boards of directors. Not applying effective governance can lead to financial failures, loss of shareholder rights, and lack of transparency deterring investment. Risks include mismanagement, abuse of power, loss of foreign investment, and withdrawal of capital. Governance aims to standardize responsibilities and achieve fairness, efficiency, and optimal resource use through transparency and accountability.
- This document discusses corporate governance in India and regulations established by the Securities and Exchange Board of India (SEBI). It provides background on corporate scandals that led to increased regulation. SEBI established Clause 49, which strengthened the role of independent directors and introduced new disclosure requirements for public companies. The key changes required companies to have a minimum number of independent directors, limited terms for non-executive directors, established codes of conduct, and enhanced financial disclosures and internal controls. Effective corporate governance is important for India's corporations as they increasingly compete globally and attract foreign investment.
Corporate Governance of Capital Market of BangladeshIOSR Journals
This paper outlines the conceptual, contextual and disciplinary scope of the rapidly evolving area of corporate governance of capital market of Bangladesh. As a basis for improving the rigor of research and analysis, some definitions, principles, theories and legal frame work of corporate governance are examined. This study also investigates the extent to which the capital market of Bangladesh comply with the corporate governance guidelines of Securities and Exchange Commission Bangladesh(SECB) and it also indicates that only sound corporate governance practices are the foundation upon which the trust of investors(stakeholders, banks, and non bank financial institutions) and other stakeholders is founded.
Corporate governance involves the system by which companies are directed and controlled through relationships between management, the board of directors, shareholders, and other stakeholders. It aims to mitigate conflicts of interest and increase accountability. Key principles of corporate governance include respecting shareholder rights, recognizing obligations to non-shareholder stakeholders, having a board with relevant skills to review management, requiring integrity and ethical behavior from officers and board members, and ensuring disclosure and transparency. Renewed interest in corporate governance emerged in 2011 due to high-profile corporate collapses often involving accounting fraud.
This document discusses corporate governance in India and provides a way forward. It begins by defining corporate governance and outlining basic principles like fairness, accountability, responsibility and transparency. It then reviews corporate governance in India, changes introduced in the Companies Act 2013, and deficiencies that can lead to financial crises. Research findings on factors that influence corporate governance systems in India are presented. The document concludes that principles of good governance must be internalized in firms and transparency improved through standards convergence, while recognizing intangible assets and stakeholder roles are important to ongoing governance reforms.
The document summarizes a study on the relationship between corporate governance and firm performance for companies listed on the Karachi Stock Exchange. The study developed a Corporate Governance Index (CGI) using 22 governance factors across three categories and analyzed its correlation with Tobin's Q valuation metric for 50 companies over three years. The results found a positive significant relationship between higher CGI scores and Tobin's Q, indicating better corporate governance is associated with higher firm valuation. Sub-index analyses found board composition and ownership factors most significantly linked to performance.
Corporate Governance a conceptual frameworkVineet Murli
This document provides an overview of corporate governance. It defines corporate governance as the system by which companies are directed and controlled, focusing on promoting fairness, transparency and accountability. The key stakeholders in corporate governance are identified as shareholders, board of directors, management and other external parties like regulators. Several principles of corporate governance are outlined, including equitable treatment of shareholders, integrity and ethical behavior. The document also discusses concepts like the principal-agent relationship in corporate governance and different models of the corporation.
This document discusses corporate governance in Nigeria. It begins by providing context on corporate governance and outlines two perspectives - narrow (structures within entities) and broad (heart of market economies and democratic societies). It then analyzes the structure of business ownership in Nigeria, finding most are not publicly listed and operate outside company/capital market laws. Government owns some large companies slated for privatization under Nigeria's privatization program begun in 1988. The document evaluates corporate governance provisions in Nigerian legislation and assesses the country's standards using OECD criteria.
The Satyam case involved a $1.4 billion corporate governance fraud at Satyam, India's fourth largest information technology company. Founder Ramalinga Raju inflated profits and falsified financial records for years before the fraud was uncovered. Key players who bore responsibility included Raju, the CFO, and directors who failed to prevent the fraud despite warning signs. The fraud occurred due to unethical conduct within Satyam's culture and a lack of transparency, with independent directors and auditors failing to properly scrutinize financial statements. The corporate governance failure had major implications, including Satyam losing clients, damage to India's outsourcing industry, and calls for stronger corporate governance regulations in India.
1. The case discusses the duties of directors in the Nurture Nature Pty Ltd company. Yolande and Shani proposed purchasing equipment at twice the price to expand to PNG, which did not occur. Wei privately signed a loan contract on behalf of the company without permission, causing financial issues.
2. The assignment analyzes whether Yolande, Shani and Wei breached their duties under common law and the Corporations Act. It also examines if the loan contract was binding on the company.
3. A proprietary limited company like Nurture Nature is governed by ASIC and cannot raise public funds since it is not listed on the ASX. It must have a constitution and directors owe duties
There are several types of research including: basic research which aims to discover fundamental truths and laws through curiosity-driven studies; applied research which tests basic research theories in practical problem situations; deductive research which derives hypotheses from theories to then make observations; and inductive research which makes observations to identify patterns and derive tentative hypotheses and theories. Research can also be quantitative using methods like surveys and experiments, or qualitative using methods like case studies, interviews and narratives to understand perceptions. Evaluative research assesses the effectiveness of programs and activities using quantitative methods such as cost-benefit analysis or qualitative methods like case studies.
This document outlines the characteristics and criteria of good research. It defines research as the systematic process of collecting and analyzing data to increase understanding. Good research is guided by a question or problem, has a clear goal and plan, and divides main problems into subproblems. It relies on collecting and interpreting data in a cyclical process. Good research clearly defines its scope, explains its process so others can reproduce it, and has a planned, objective design with ethical standards and justified conclusions. The research process involves raising a question, suggesting hypotheses, reviewing literature, acquiring data, analyzing and interpreting data, and determining if hypotheses are supported.
A focus group is a carefully planned discussion aimed at obtaining perceptions on a defined topic. It involves gathering a small group of people together to discuss a topic guided by a moderator. Focus groups are effective for understanding human behavior and motivations when participants feel comfortable sharing their views and opinions. They produce qualitative data that can help indicate a range of views, though results cannot be generalized to the wider population. Successful focus groups require careful planning, participant selection, skillful moderation, and meaningful questioning to effectively capture and analyze the discussion.
The document discusses motivation and different motivation theories including Maslow's hierarchy of needs and Herzberg's two-factor theory. Maslow proposed that people are motivated to fulfill basic physiological needs, safety needs, social needs, esteem needs, and self-actualization needs in that order. Herzberg suggested there are hygiene factors like salary and working conditions that prevent dissatisfaction but do not motivate, and motivators like achievement and recognition that positively motivate performance. The document analyzes how these theories apply to employee motivation.
The document discusses transportation problems (TPs), which involve determining the optimal way to route products from multiple supply locations to multiple demand destinations to minimize total transportation costs. It provides the mathematical formulation of a TP as a linear programming problem (LPP) with decision variables representing the quantity transported between each origin-destination pair. Methods for solving TPs include the simplex method by formulating it as an LPP or specialized transportation methods like the northwest corner rule to find an initial feasible solution and stepping stone/modified distribution methods to check for optimality. An example TP is presented to illustrate these concepts.
(1) Hershey's was founded in 1894 and has since grown to be a global chocolate brand through acquisitions and international expansion. (2) It produces a wide variety of chocolate bars, snacks, syrups and other products. (3) While it faces competition from larger brands like Mars and Nestle, Hershey's maintains a leading market share position in the US through promotional campaigns, partnerships and positioning its products for different occasions.
A quotation is a document provided by a vendor or service provider to a customer that describes goods or services being offered and their costs. It includes the item descriptions, quantities, unit prices, and total prices. A quotation number, date, payment terms, and validity period are usually included. Financial quotations refer to market data like stock prices, while sales quotations are offers for goods and services. The key components of a quotation are a header with business details, a body listing items and pricing, and a footer with totals, terms, and signatures.
The document discusses group development and team building. It defines different types of groups like formal groups, informal groups, command groups, and interest groups. It describes Bruce Tuckman's five stages of group development: forming, storming, norming, performing, and adjourning. It also discusses group norms, roles, cohesion, and factors that influence group performance like social loafing and group size. The Hawthorne Studies from the 1920s-30s are summarized, which investigated the impact of workplace factors like illumination and hours on productivity.
The document provides an overview of computer basics. It discusses:
1. The order of presentation for the slides, which cover introduction, inputs/outputs, storage devices, memory, and the CPU/uses.
2. The definition of a computer as a device that accepts input, processes data, and produces output according to stored instructions.
3. The main hardware components of a computer including input devices like keyboards and mice, output devices like monitors and printers, storage devices like hard drives and CDs/DVDs, and memory like RAM and ROM.
4. The central processing unit containing the arithmetic logic unit, control unit, and registers to perform calculations and coordinate processing.
5
The document describes the rules and questions for a business quiz competition between multiple teams. The rules state that questions will be passed to another team if the current team gets a question wrong or does not answer. There is negative marking for incorrect answers but not for passing a question. Scores are awarded as +10 for correct answers and -5 for incorrect answers.
The questions cover various topics in business including companies, business leaders, acts, and logos. The questions are asked in multiple choice format without options to choose from, requiring the teams to provide the answer. The document records the questions asked and answers provided by the teams in the first two rounds - one with typical questions and the second with logos to identify. The
The document defines demand as the amount of a product consumers are willing and able to purchase at different price levels. It discusses how demand curves are graphed with price on the y-axis and quantity on the x-axis, showing an inverse relationship between price and quantity demanded. Supply is defined as the amount producers are willing to provide at different price levels, with supply curves showing a direct relationship between price and quantity supplied. Equilibrium occurs where supply and demand are equal, at the price where quantity supplied equals quantity demanded.
The document discusses demand and supply. It defines demand as the desire and ability to purchase a product and explains the difference between demand and quantity demanded. The law of demand states that demand increases when price decreases and decreases when price increases, assuming other factors stay constant. Supply is defined as the willingness and ability of producers to provide a product. The law of supply states that supply increases with price and decreases with price, holding other factors fixed. Determinants of both demand and supply are also outlined.
Analysis of sales of fixed deposit at indian bank and bank of indiaA B
The document analyzes sales data of fixed deposits (FDs) from two banks - Indian Bank and Bank of India - over 12 months to compare their performance and consistency. Primary data was collected through random sampling and analyzed using statistical tools like mean, standard deviation, and hypothesis testing. The hypothesis testing showed that while the mean sales of the two banks were different, the difference was not statistically significant based on the sample size and data limitations. Therefore, the performance of the two banks in terms of FD sales can be considered the same.
Communication is the process of transmitting meaningful information from one party to another through shared symbols. It involves encoding a message, transmitting it through a channel, and the receiver decoding the message. Effective communication is achieved when the intended meaning is understood by the receiver and feedback allows the sender to clarify any misunderstandings.
John Rawls' A Theory of Justice proposes principles of justice to structure an ideal society. Rawls argues that rational individuals in an original position of equality, without knowledge of their social status, would agree to two principles: 1) Equal liberty as long as it doesn't infringe on others' liberty, and 2) Social and economic inequalities must benefit all and be open to all. Rawls believes these principles derived from a social contract theory provide a stronger basis for equality than utilitarianism by denying that infringing basic rights can be justified by greater benefits for more people. He defines justice as fairness under these fair and impartial conditions.
This document discusses four areas of the self: the open area which is known to others; the blind area which others can see but we cannot; the hidden area which we do not share with others; and the unknown area which contains parts of ourselves that are not consciously known even to ourselves but can be revealed through things like dreams or insights. Feedback from others about our open area allows us to test our self-perception and grow in self-awareness.
The document discusses group dynamics and decision making. It defines what constitutes a group and explores the nature of groups, including that they require at least two people, interaction, a reasonable size, shared goals and stability. It examines reasons for group formation such as warmth, support, power, affiliations and recognition. The document also covers types of groups, models of group behavior, determinants of group cohesion and techniques for group decision making.
This document discusses the importance of ethics in the finance sector. It notes that individuals trust financial firms with their hard-earned savings and want to feel confident that professionals will act with integrity. It then provides an overview of regulators and players in the Indian financial sector before detailing some common ethical violations like insider trading and prioritizing shareholder over stakeholder interests. Finally, it suggests some ways to curb unethical behavior such as improving standards, strengthening laws, and enhancing the role of auditors.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
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5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
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Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
1. Insider trading is the trading of a corporation's stock or other securities (e.g. bonds or stock options) by
individuals with potential access to non-public information about the company.
Such a trade is motivated by the possibility of generating extraordinary gain with the help
of nonpublic information (information not yet made public). It gives the trader an unfair
advantage over other traders in the same security.
insiders are defined as a company's officers, directors and any beneficial owners of more than ten
percent of a class of the company's equity securities
------------------------------------------------------------2---------------------------------------------------------------------------
It is important to distinguish between a STAKEHOLDER and a SHAREHOLDER. They sound the same –
but the difference is crucial!
Shareholders hold shares in the company – that is they own part of it.
Stakeholders have an interest in the company but do not own it (unless they are shareholders).
Often the aims and objectives of the stakeholders are not the same as shareholders and they come into
conflict.
The conflict often arises because while shareholders want short-term profits, the other stakeholders’
desires tend to cost money and reduce profits. The owners often have to balance their own wishes
against those of the other stakeholders or risk losing their ability to generate future profits (e.g. the
workers may go on strike or the customers refuse to buy the company’s products).
---------------------------------------------------------------3--------------------------------------------------------------------------
Campaign finance refers to the fundraising and spending that political campaigns do in their election
campaigns. As campaigns have many expenditures, ranging from the cost of travel for the candidate and
others might include the purchasing of air time for TV advertisements, however in some countries, such
as Britain TV advertising is free. Candidates often devote substantial time and effort raising money to
finance campaigns.
Although the political science literature indicates that most contributors give to support candidates with
[1]
whom they are already in agreement, there is wide public perception that donors expect illegitimate
[2]
government favors in return (such as specific legislation being enacted or defeated), so some have
[citation needed]
come to equate campaign finance with political corruption and bribery . These views have led
some governments to reform fundraising sources and techniques in the hope of eliminating perceived
undue influence being given to monied interests. Another tactic is for the government, rather than private
individuals and organizations, to provide funding for campaigns.
Democratic countries have differing regulations on what types of donations to political parties and
campaigns are acceptable.
--------------------------------------------------------end-------------------------------------------------------
2. Time for tighter norms to protect stakeholders’ interest
Amit Mitra
Debate over prevailing standards of corporate governance in India gained stridency in the last couple of months in
the wake of the un-spooling of the sordid Satyam fiasco.
Apart from temporarily staining the image of corporate India, Satyamgate, described as a home-grown replica of the
infamous Enron saga, did pick holes in the prevailing standards of corporate governance in India.
More importantly, it brought into sharper focus the need and scope for tightening corporate governance norms to
benefit the growing population of Indian investors in the share bazaar.
It was on the chilly evening of September 22, 2008 in London, when Satyam Computer Services was awarded the
coveted Golden Peacock Global Award for Excellence in Corporate Governance for 2008 by the World Council for
Corporate Governance, with Dr Ola Ullsten, the former Prime Minister of Sweden, serving as the lead judge.
And weeks later, the same Satyam got enmeshed in the squalid trappings of deliberate fraud, misleading of
shareholders and poor corporate governance.
Under pressure from mutual funds and minority stakeholders, Satyam did finally call off the decision to purchase 51
per cent stake in Maytas Infrastructure and 100 per cent in Maytas Properties.
But this left in its wake several issues related to corporate governance.
Firstly, the decision was not announced taking into confidence all the stakeholders of the company. That the twin
Maytas companies are run by the family members of the scam-tainted founder of Satyam, Mr Ramalinga Raju, is
clearly a case of blatant jettisoning of healthy corporate governance practices.
Nasscom, the premier trade body and the voice of the Indian IT/BPO industry, quickly reacted by announcing that it
will be forming a Corporate Governance and Ethics Committee, chaired by Mr N.R. Narayana Murthy, Chief Mentor of
Infosys. Stock market regulator SEBI also announced that it would examine if there was a need to tweak existing
regulations to enhance, compliance, transparency and efficiency in the corporate system.
Improving standards
There is no gainsaying of the importance of corporate governance at a time when stock market interests have
clambered up on to a much higher perch as compared to some years ago. In fact, the turmoil in global financial
markets can be partly traced to poor corporate governance, with many reputed global financial institutions keeping
shareholders in the dark regarding their precise financial standing.
Back home, there is no denying that the Government, share market regulator, SEBI, and corporate India have been
pushing themselves hard to raise the bar for corporate governance. But the question is has corporate governance
standards have improved to the desired levels.
What is corporate governance? Broadly, it refers to the set of systems, principles and processes by which a company
is governed. It can be defined as the relationship of a company to its shareholders, going beyond just legal
compliance.
In other words, corporate governance encompasses a broad spectrum of elements, ranging from the role and powers
of the Board, legislation, Board independence, code of conduct to financial and operational reporting, audit
committees and risk management.
Comprehensive laws
3. India, indeed, has an elaborate system of laws governing corporate governance. To start with, the Companies Act,
1956 covers corporate governance widely through a string of provisions such as constitution of audit committee,
fixing of a ceiling on remuneration for directors and directors‘ responsibility statement.
It was the Confederation of Indian Industry (CII) that came out with the first comprehensive code on corporate
governance in 1998, which was followed by the recommendations of the Kumar Mangalam Birla Committee on
Corporate Governance, appointed by SEBI.
The recommendations were embedded into the Clause 49 of the Listing Agreement on Indian stock exchanges.
At that time, the issue of corporate guidelines had come into focus in the wake of huge foreign investments flowing
into the country — these investors wanted assurance that the companies they were investing in will be managed well.
And to further enhance their confidence and to safeguard retail investors, SEBI had revised Clause 49 of its ―listing
agreement‖, which stipulated that at least one-third of the directors on the boards of the companies should be
independent professionals.
These directors should in no way be connected to the interests of promoters. The revised Clause 49 was made
effective from January 1, 2006.
Major changes were also made to the definition of ‗independent directors‘, strengthening of the responsibilities of
audit committee and improving the quality of financial disclosure.
The board, as a whole, was assigned the task of adoption of a formal code of conduct for senior management and
the certification of financial statements issued by the CEO/CFO.
It is, however, no secret that many companies are yet to fully comply with the Clause 49 norms. It is thus time for
SEBI to get stricter with such companies to protect shareholders interests.
Pledging of shares
More recently, SEBI, in an attempt to further enhance transparency in corporate corridors, had made it mandatory for
promoters to announce their pledged shares for the public.
Pledging of promoters shares has been commonplace in the history of corporate India and, as it was not earlier
mandatory on them to disclose the amount of shares pledged, shareholders were left guessing.
Now that this disclosure has been made mandatory, shareholders will have a better idea of the financial stability and
ownership status of the companies they invested in.
Weak links
However, despite these measures, there still exists some weak links in the system.
For example, experts say, the Satyam episode did bring to the fore once again the role of independent directors, who
are supposed to protect shareholder interests.
―Independent directors should also be held accountable for board decisions and audit-related compliance practices,‖
said an analyst on corporate governance.
Auditors‘ role
Apart from independent directors, the role of auditors also came into focus.
4. The question that began to do the rounds in investors‘ circles in the immediate aftermath of the Satyam scandal was
whether shareholders and other stakeholders could take any action against the auditors.
Ms Namrata Mehta, Corporate Lawyer, Economic Laws Practice (ELP), a law firm that advises and litigates in areas
of Direct and Indirect Tax, says ―how an Indian Court will view the liability of the auditors of Satyam will depend upon
the extent to which the Court is convinced about a claim for negligence.‖
She further points out that regardless of the final outcome, auditors must be ―reading their professional indemnity
insurance contracts with a microscope and wishing that the Limited Liability Partnership Act was passed a few
months earlier.‖
Institutional investors
Experts feel that institutional investors can play a greater role in ensuring effective corporate governance standards,
as they have a clout to extract information and play an activist role. This was best exemplified in the Satyam scam.
As for retail investors, it is important that they take all possible precautions before making investments.
Whatever may be the denouement of the Satyam fiasco, it is pertinent that corporate houses take this black chapter
of India‘s corporate history as a lesson in poor corporate governance practices and collectively map out a stricter
structure that will protect the interests of all stakeholders.
nsider trading is a term subject to many definitions and connotations and it encompasses both legal and
prohibited activity. Insider trading takes place legally every day, when corporate insiders – officers, directors
or employees – buy or sell stock in their own companies within the confines of company policy and the
regulations governing this trading. In simple terms ‗insider trading‘ buying or selling a security, in breach of a
fiduciary duty or other relationship of trust , and confidence , while in possession of material , nonpublic
information about the security
Thus , in nutshell , insider trading is the buying , selling or dealing in securities of a listed company by a
director , member of management , employee of the company , or by any other person such as internal
auditor , advisor , consultant , analyst etc, who has knowledge of material inside information which is not
5. available to general public
Examples of Insider Trading-
Corporate officers -, directors and employees who , traded the company‘s securities after learning of
significant, confidentiality corporate developments;
Employees of law, banking , brokerage and printing firms- who were given such information to provide
services to corporation whose securities they traded;
Government employees – who learned of such information because of their employment by the government;
Therefore, preventing such transactions is an important obligation for any capital market regulatory
system,because insider trading undermines investor confidence in the fairness and integrity of the securities
markets.
For instance, prior knowledge of a bonus issue would result in the insider acquiring a significant exposure in
particular scrip, knowing that his holding would increase significantly after the bonus is announced.
The first country to tackle insider trading effectively however was the United States[1].In the USA, the
Securities and Exchange Commission is empowered under the Insider Trading Sanctions Act, 1984 to
impose civil penalties in addition to criminal proceedings. Most countries have in place suitable legislation to
curb the menace of insider trading.
In India, SEBI (Insider Trading) Regulations 1992, framed under Section 11 of the SEBI Act, 1992, are
intended to prevent and curb the menace of insider trading in Securities. Now SEBI has with effect from 20th
February 2002 amended these Regulations and rechristened them as SEBI 9 Prohibition of Insider Trading
Regulation , 1992 . These Regulation have been further amended in November 2002
Rational Behind Prohibition of Insider Trading
The smooth operation of the securities market and its healthy growth and development depends on a large
extend on the quality and integrity of the market .Such a market can alone inspire confidence in investors
Insider trading leads to loose of confidence of investors in securities market as they feel that market is rigged
and only the few, who have inside information get benefit and make profits from their investments . Thus,
process of insider trading corrupts the ‗level playing field‘
Hence the practice of insider trading is intended to be prohibited in order to sustain the investor‘s confidence
in the integrity of the security market.
In Samir C Arora Vs SEBI [2]
It was observed that activities like insider trading fraudulent trade practices and professional misconduct are
absolutely detrimental to the interests of ordinary investors and are strongly deprecated under the SEBI
Act,1992 and the Regulations made there under. No punishment is too severe for those indulging such
activities.
MEANING OF Insider & Insider Trading Defined
Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992, does not directly
define the term "insider trading".
But it defines the terms-
. insider" or who is an "insider;[3]
. who is a "connected person[4]
. What are "price sensitive information".[5]
Insider
According to the Regulations "insider" means any person who, is or was connected with the company or is
deemed to have been connected with the company, and who is reasonably expected to have access,
connection, to unpublished price sensitive information in respect of securities of a company, or who has
6. received or has had access to such unpublished price sensitive information;
The above definition in turn introduces a new term "connected person".
Connected person
The Regulation defines that a "connected person" means any person who-
(i) is a director, as defined in clause (13) of section 2 of the Companies Act, 1956 (1 of 1956) of a company,
or is deemed to be a director of that company by virtue of sub-clause (10) of section 307 of that Act or
(ii) occupies the position as an officer or an employee of the company or holds a position involving a
professional or business relationship between himself and the company whether temporary or permanent
and who may reasonably be expected to have an access to unpublished price sensitive information in
relation to that company;
Price Sensitive Information means any information, which relates directly or indirectly to a company and
which if published, is likely to materially affect the price of securities of company.
American insider trading law
The United States has been the leading country in prohibiting insider trading and the first country to tackle
insider trading effectively.
Thus it is important to discuss insider trading in American perspective. While Congress gave us the mandate
to protect investors and keep our markets free from fraud, it has been our jurists, albeit at the urging of the
Commission and the United States Department of Justice, who have played the largest role in defining the
law of insider trading.
The market crash in 1929 due to prolonged lack of investors confidence in the securities market followed by
Great Depression of US Economy , led to the enactment of Securities Act of 1933 in which Section 17 of the
contained prohibitions of fraud in the sale of securities which were greatly strengthened by the Securities
Exchange Act of 1934The 1934 Act addressed insider trading directly through Section 16(b) and indirectly
through Section 10(b).Section 16(b) of the Securities Exchange Act of 1934 prohibits short-swing profits
(from any purchases and sales within any six month period) made by corporate directors, officers, or
stockholders owning more than 10% of a firm‘s shares. Under Section 10(b) of the 1934 Act, SEC Rule 10b-
5, prohibits fraud related to securities trading. Further the Insider Trading Sanctions Act of 1984 and the
Insider Trading and Securities Fraud Enforcement Act of 1988 provide for penalties for illegal insider trading
to be as high as three times the profit gained or the loss avoided from the illegal trading..[ Much of the
development of insider trading law has resulted from court decisions. In SEC v. Texas Gulf Sulphur Co.[6], a
federal circuit court stated that anyone in possession of inside information must either disclose the
information or refrain from trading. (1966)
In 1984, the Supreme Court of the United States ruled in the case of Dirks v. SEC that tippees (receivers of
second-hand information) are liable if they had reason to believe that the tipper had breached a fiduciary
duty in disclosing confidential information and the tipper received any personal benefit from the disclosure.
(Since Dirks disclosed the information in order to expose a fraud, rather than for personal gain, nobody was
liable for insider trading violations in his case.)
The Dirks case also defined the concept of "constructive insiders," who are lawyers, investment bankers and
others who receive confidential information from a corporation while providing services to the corporation.
Constructive insiders are also liable for insider trading violations if the corporation expects the information to
remain confidential, since they acquire the fiduciary duties of the true insider.
In United States v. Carpenter (1986) the U.S. Supreme Court cited an earlier ruling while unanimously
upholding mail and wire fraud convictions for a defendant who received his information from a journalist
rather than from the company itself. The journalist R. Foster Winans was also convicted. [7]
"It is well established, as a general proposition, that a person who acquires special knowledge or information
by virtue of a confidential or fiduciary relationship with another is not free to exploit that knowledge or
information for his own personal benefit but must account to his principle for any profits derived therefrom."
However, in upholding the securities fraud (insider trading) convictions, the justices were evenly split.
In 1997 the U.S. Supreme Court adopted the misappropriation theory of insider trading in United States v.
7. O'Hagan, 521 U.S. 642, 655 (1997),. O'Hagan was a partner in a law firm representing Grand Met, while it
was considering a tender offer for Pillsbury Co. O'Hagan used this inside information by buying call options
on Pillsbury stock, resulting in profits of over $4 million. O'Hagan claimed that neither he nor his firm owed a
fiduciary duty to Pillsbury, so that he did not commit fraud by purchasing Pillsbury options.
The Court rejected O'Hagan's arguments and upheld his conviction.
The "misappropriation theory" holds that a person commits fraud "in connection with" a securities transaction,
and thereby violates 10(b) and Rule 10b-5, when he misappropriates confidential information for securities
trading purposes, in breach of a duty owed to the source of the information. Under this theory, a fiduciary's
undisclosed, self-serving use of a principal's information to purchase or sell securities, in breach of a duty of
loyalty and confidentiality, defrauds the principal of the exclusive use of the information. In lieu of premising
liability on a fiduciary relationship between company insider and purchaser or seller of the company's stock,
the misappropriation theory premises liability on a fiduciary-turned-trader's deception of those who entrusted
him with access to confidential information.
The Court specifically recognized that a corporation‘s information is its property: "A company's confidential
information...qualifies as property to which the company has a right of exclusive use. The undisclosed
misappropriation of such information in violation of a fiduciary duty...constitutes fraud akin to embezzlement –
the fraudulent appropriation to one's own use of the money or goods entrusted to one's care by another."
In 2000, the SEC enacted Rule 10b5-1, which defined trading "on the basis of" inside information as any time
a person trades while aware of material nonpublic information — so that it is no defense for one to say that
she would have made the trade anyway. This rule also created an affirmative defense for pre-planned trades.
In May of 2007, representatives Brian Baird and Louise Slaughter introduced a bill entitled the "Stop Trading
on Congressional Knowledge Act, or STOCK Act." that would hold congressional and federal employees
liable for stock trades they made using information they gained through their jobs. The bill would also seek to
regulate so called "Political Intelligence" firms that research government activities and sell the information to
financial managers.
Insider trading in India
In India Regulation 3 of the SEBI Regulations seeks to prohibit dealing, communication and counseling on
matters relating to, insider trading. Regulation 3 provides that no insider shall either on his own behalf of any
other person deal in securities of a company when in possession of any unpublished price sensitive
information on communicate, counsel or procure , directly or indirectly any unpublished price sensitive
information to any person , who while in possession of such unpublished price sensitive information shall not
deal in securities. However, these restrictions are not applicable to any communication required ordinary,
course of business or profession or employment or any law.
Further 3 A prohibits any company from dealing in the securities of another company or associate of that
other company while in possession of any unpublished price sensitive information.
Insider Trading Regulations have been tightened by SEBI during February 2002. New rules cover 'temporary
insiders' like lawyers, accountants, investment bankers etc.[8]
Directors and substantial shareholders have to disclose their holding to the company periodically. The New
Regulations have added relatives of connected persons, as well as, the companies, firms, trust, etc.in which
relatives of connected persons, bankers of the company and of persons deemed to be connected persons
hold more than 10% .The definition of relative[9]under the New regulations is in line with that of the
Companies Act, 1956, which ranges from parents and siblings to spouses of siblings and grandchildren. The
term ―connected person‖ is defined to mean either i) a director or deemed to be a director, ii) occupies the
position as an officer or an employee or having professional or business relationship whether temporary or
permanent, with the company. Thus, there are two categories of insiders:
Primary insiders, who are directly connected with the company and secondary insiders who are deemed to
be connected with the company since they are expected to have access to unpublished price sensitive
information.[10] The jurisprudential basis for the 'person-connected' approach seems to be founded in the
8. equitable notions of fiduciary duty.
The secondary insider, who would have traded with an unfair informational advantage, may escape from
being caught simply because there can be no trace of how he derived this information in the first place.
insider by reason of his connection with the company. In reality, much of the flow of the price-sensitive
information often does not operate by way of such established networks of relational links between
individuals. Very often, such price-sensitive information is communicated and spread out through very
loosely connected and informal networks of brokers, clients and even between friends and through electronic
networks etc. or an elaborate nexus of company official, brokers, traders. These individuals are very often
privy to strategic policy decisions or developments that may influence the valuation of a company‘s scrip on
the bourses.
Duties/ Obligations Of the company
Every listed company has the following obligations under the SEBI(Prohibition of Insider Trading)Regulations
, 1992
To appoint a senior level employee generally the Company Scecretary , as the Compliance Officers;
To set up an appropriate mechanism and to frame and enforce a code of conduct for internal procedures,
To abide by the Code of Corporate Disclosure practices as specified in Schedule ii to the SEBI (Prohibition of
Insider Trading)Regulations , 1992
To initiate the information received under the initial and continual disclosures to the Stock Exchange within 5
days of their receipts;
To specify the close period;
To identify the Price Sensitive Information
To ensure adequate data security of confidential information stored on the computer;
To prescribe the procedure for the pre- clearance of trade and entrusted the Compliance Officers with the
responsibility of strict adherence of the same
Penalties
Following penalties /punishments can be imposed in case of violation of SEBI (Prohibition of Insider
Trading)Regulations , 1992
SEBI may impose a penalty of not Rs 25 Crores or three times the amount of profit made out of insider
trading; whichever is higher
SEBI may initiate criminal prosecution
SEBI may issue orders declaring transactions in securities based on unpublished price sensitive information
SEBI may issue orders prohibiting an insider or refraining an insider from dealing in the securities of the
company
Conclusion
The new 2002 regulations in India have further fortified the 1992 regulations and have increased the list of
persons that are deemed to be connected to Insiders. Listed companies and other entities are now required
to frame internal policies and guidelines to preclude insider trading by directors, employees, partners, etc. In
the past, it has been observed that insider trading legislation is ineffective and difficult to enforce and has
little impact on securities markets. Low enforcement rates and few convictions against insiders have been
cited as evidence of this ineffectiveness. Irrespective of whether or not the SEBI was bestowed with wide
ranging powers, it has been a clear failure when it came to the task of administering the law.
The importance of policing insider trading has also assumed international significance as overseas regulators
attempt to boost the confidence of domestic investors and attract the international investment community.
So, SEBI now should take the role of a regulator only. Special Courts could be set up for faster and
efficacious disposal of cases.
References
1. Where an insider discloses the inside information to another person, otherwise than in the proper
performance of the functions of his employment, office or profession. (Section 52(2) (b)).
2. 83 /2004
3. SEBI (Insider Trading) Regulations 1992[Reg2(e)]
4. [Reg 2(c)]
5. Reg 2(ha)]
6. (1966)
9. 7. Christopher Cox, U.S. Securities and Exchange Commission Speech by SEC Chairman:Remarks at the
Annual Meeting of the Society of American Business Editors and Writers
8. www.academyofcg.org/marchissue.htm
9. On September 15, 2002 the SEBI Board decided to relax the meaning of the term `relative' in the Insider
Trading Regulations. Only direct relatives of those who are deemed to have price-sensitive insider
information on securities will now come under the ambit of the Securities and Exchange Board of India
(Insider Trading) Regulations. SEBI officials pointed out that the decision to exclude the third category of
relatives from the ambit of the insider trading regulations comes in the wake of a host of representations
saying that the existing definition of the term relative was too restrictive
10. Regulation 2(h) identifies seven broad categories of secondary insiders within which these are a few sub-
categories, such as (a) Companies under the same management;(b) Members and employees of Stock
exchanges;(c) Market Intermediaries, Mutual Funds etc.;(d) Directors and employees of financial
institutions;(e) Officers and employees of self-regulatory bodies;(f) Relatives;(g) Bankers
--------------------------------------------------------------------------------
[1]Where an insider discloses the inside information to another person, otherwise than in the proper
performance of the functions of his employment, office or profession. (Section 52(2) (b)).
[2] 83 /2004
[3]SEBI (Insider Trading) Regulations 1992[Reg2(e)]
[4] [Reg 2(c)]
[5] Reg 2(ha)]
[6](1966),
[7]Christopher Cox, U.S. Securities and Exchange Commission Speech by SEC Chairman:Remarks at the
Annual Meeting of the Society of American Business Editors and Writers
[8]www.academyofcg.org/marchissue.htm
[9]On September 15, 2002 the SEBI Board decided to relax the meaning of the term `relative' in the Insider
Trading Regulations. Only direct relatives of those who are deemed to have price-sensitive insider
information on securities will now come under the ambit of the Securities and Exchange Board of India
(Insider Trading) Regulations. SEBI officials pointed out that the decision to exclude the third category of
relatives from the ambit of the insider trading regulations comes in the wake of a host of representations
saying that the existing definition of the term relative was too restrictive
Added Date: 15 Jan
2008
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words
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