- Samir Arora, a director of DGL, purchased shares of DGL between May 12-June 6, 2003 while in possession of unpublished price sensitive information regarding the proposed merger ratio. This allowed him to gain from the increase in share price before the information was made public.
- The SAT ruled that although the merger ratio was discussed at the Board meeting on May 12, it was not finalized or announced at that time. Therefore, the period between May 12-June 6 when the ratio was finalized but not public was when Arora possessed unpublished price sensitive information. His share purchases during this period violated insider trading laws.
- This case established that knowledge of a proposed corporate action, even
Insider trading involves using non-public information to profit or avoid losses in the stock market. Some high-profile cases over the past decade include Martha Stewart, Ivan Boesky, and Michael Milken. Martha Stewart received a 5-month prison sentence and $30,000 fine, while Ivan Boesky got 3.5 years in prison and a $100 million fine. Michael Milken's total fines and restitution amounted to $1.1 billion. Laws like the Securities Exchange Act of 1934 and Insider Trading Sanctions Act of 1984 aim to regulate securities trading and lay out penalties for insider trading, including fines of up to three times any profits made. It is important for PR professionals to understand and comply with
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.
Legal Environment - International Business - Manu Melwin Joymanumelwin
Managers must be aware of the legal systems in the countries in which their firms operate, the basic nature of the legal profession (both domestic and international) and the legal relationships that exist between and among countries. Legal systems differ both in terms of the nature of the system and the degree of independence of the judiciary from the political process.
Simon Brooks from law firm Eversheds Sutherland gave a presentation on major changes to UK insurance law from the Insurance Act 2015. The new law introduces a duty of fair presentation of risk that requires insureds to disclose all material information to insurers. It also changes remedies for breach to include proportionate reductions in claims instead of automatic avoidance of the policy. Warranties will now be treated as suspensory conditions so coverage isn't voided for unrelated breaches. The changes aim to make disclosure obligations and consequences more proportionate and fair.
Neill Blundell provides an update of recent bribery activity around the world and discusses whether it is a real issue for business or merely an overstated problem.
09
20
07
01
- The document appears to be a workbook or study guide related to the legal environment of business. It is divided into multiple chapters that cover basic concepts, case studies, applied theory, and model questions.
- The chapters would provide explanatory notes, questions and answers related to topics such as basic legal concepts, business contracts, non-corporate business entities, corporate business entities, and other aspects of commercial and company law.
- The document is intended to help students learn and understand the legal principles and framework governing business operations in India. It examines various laws, rules and regulations from multiple sources that constitute the legal environment for conducting business activities.
Bribery and corruption - where is it on your agenda?
French Trade Commission Group
19 April 2012
Lewis Rangott
Ernst & Young
Plus de contenu sur http://australie.cnccef.org
- Bribery is illegal and has negative effects on businesses, individuals, and society. The Bribery Act 2010 was introduced to modernize UK bribery law and tackle all forms of bribery.
- The course aims to help learners understand the key provisions of the Bribery Act 2010, identify potential bribery risks, understand the principles and implications for business, explain why anti-bribery measures are essential, and know what an anti-bribery policy includes.
- There are six main principles of the Bribery Act 2010 that guide organizations' anti-bribery procedures: proportionate procedures, top-level commitment, risk assessment, due diligence,
Insider trading involves using non-public information to profit or avoid losses in the stock market. Some high-profile cases over the past decade include Martha Stewart, Ivan Boesky, and Michael Milken. Martha Stewart received a 5-month prison sentence and $30,000 fine, while Ivan Boesky got 3.5 years in prison and a $100 million fine. Michael Milken's total fines and restitution amounted to $1.1 billion. Laws like the Securities Exchange Act of 1934 and Insider Trading Sanctions Act of 1984 aim to regulate securities trading and lay out penalties for insider trading, including fines of up to three times any profits made. It is important for PR professionals to understand and comply with
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.
Legal Environment - International Business - Manu Melwin Joymanumelwin
Managers must be aware of the legal systems in the countries in which their firms operate, the basic nature of the legal profession (both domestic and international) and the legal relationships that exist between and among countries. Legal systems differ both in terms of the nature of the system and the degree of independence of the judiciary from the political process.
Simon Brooks from law firm Eversheds Sutherland gave a presentation on major changes to UK insurance law from the Insurance Act 2015. The new law introduces a duty of fair presentation of risk that requires insureds to disclose all material information to insurers. It also changes remedies for breach to include proportionate reductions in claims instead of automatic avoidance of the policy. Warranties will now be treated as suspensory conditions so coverage isn't voided for unrelated breaches. The changes aim to make disclosure obligations and consequences more proportionate and fair.
Neill Blundell provides an update of recent bribery activity around the world and discusses whether it is a real issue for business or merely an overstated problem.
09
20
07
01
- The document appears to be a workbook or study guide related to the legal environment of business. It is divided into multiple chapters that cover basic concepts, case studies, applied theory, and model questions.
- The chapters would provide explanatory notes, questions and answers related to topics such as basic legal concepts, business contracts, non-corporate business entities, corporate business entities, and other aspects of commercial and company law.
- The document is intended to help students learn and understand the legal principles and framework governing business operations in India. It examines various laws, rules and regulations from multiple sources that constitute the legal environment for conducting business activities.
Bribery and corruption - where is it on your agenda?
French Trade Commission Group
19 April 2012
Lewis Rangott
Ernst & Young
Plus de contenu sur http://australie.cnccef.org
- Bribery is illegal and has negative effects on businesses, individuals, and society. The Bribery Act 2010 was introduced to modernize UK bribery law and tackle all forms of bribery.
- The course aims to help learners understand the key provisions of the Bribery Act 2010, identify potential bribery risks, understand the principles and implications for business, explain why anti-bribery measures are essential, and know what an anti-bribery policy includes.
- There are six main principles of the Bribery Act 2010 that guide organizations' anti-bribery procedures: proportionate procedures, top-level commitment, risk assessment, due diligence,
This document provides an overview of initial public offers (IPOs) in India, including:
- IPOs allow unlisted companies to raise funds by offering shares to the public for the first time. They are an important process for transforming a company.
- Companies must be at an appropriate stage of growth and meet regulatory eligibility requirements before pursuing an IPO. The process takes at least one year to plan and execute properly.
- Key aspects of IPOs that are discussed include procedures and timelines, regulatory frameworks, eligibility requirements, pricing norms, and requirements for promoters' contributions and lock-ins. Book building and fixed price issue types are compared.
Insider Trading_Provisions Offence & Penalty_IICA_07 01 2013_MKManoj K
1) The document summarizes key provisions of SEBI's Prohibition of Insider Trading Regulations regarding insider trading, including definitions of insiders, connected persons, unpublished price sensitive information, prohibited activities, disclosure requirements, and penalties for violations.
2) It outlines the process for investigations into suspected insider trading, including the powers of SEBI to inspect books and records and issue directions. SEBI can issue directions like not dealing in securities or recovering profits.
3) It discusses disclosure requirements for substantial acquisitions and shareholding changes by promoters, directors and other insiders. Timelines of 2 working days are specified for different forms based on the transaction.
Business environment and their factors mehul chopra
these slides will help you in knowing that how different factors affect the business environment what is business environment and all. this will help you to enhance your knowledge more. and it describes all the factors clearly and in a very simple language
Este documento presenta las respuestas de un estudiante de Seguridad Pública a preguntas sobre la globalización en el contexto de México. Define la globalización como un proceso de integración económica, política y cultural entre países. Identifica que la caída del Muro de Berlín y el modelo neoliberal dieron origen a este fenómeno. Explica los efectos de la globalización en los ámbitos social, económico y político de México, así como los retos que enfrenta el país ante este proceso global, incluyendo la
The document provides a summary of MASTHAN.D's work experience and qualifications as an Oracle BI Publisher Consultant. It outlines his 3+ years of experience developing reports in BI Publisher 11g and Oracle Applications R12, including experience migrating Oracle Reports to BI Publisher, developing bursting and scheduling reports, and creating complex templates. It provides details on 3 projects for clients Bestseller, UAL Industries Ltd., and Albertsons, describing his roles and responsibilities which involved report development, customizations, and migrations.
Colombia, internet y movilización social AO2 Cabezas Maria JoseMajo Cabezas
El documento describe cómo las redes sociales y la tecnología móvil han facilitado la movilización social en Colombia. Los videos e imágenes en tiempo real compartidos en línea durante protestas y conflictos permitieron que el público se escuchara a sí mismo. Como resultado, se ha construido una nueva ciudadanía capaz de articular civismo y compromiso desde Internet, uniendo a miles de personas más allá de las distancias geográficas. Las redes sociales se han situado como protagonistas, permitiendo nuevas formas de activismo que desafían el orden establecido
The document outlines the professional experience and qualifications of an individual with extensive experience in afterschool program administration and STEM education. They have overseen large budgets and staff at multiple afterschool programs, with a focus on developing STEM/STEAM programming, academic enrichment, and family initiatives. The individual also has teaching experience and holds several certifications related to instructional technology and youth development.
El documento presenta un sermón religioso que habla sobre la fe y la sanidad divina. El orador comparte experiencias positivas de una reunión pentecostal y alienta a los creyentes a caminar en fe. También anuncia temas para futuros sermones y desea explicar la verdad bíblica sobre el matrimonio y el divorcio antes de irse.
How to export site objects to your real estate website.
The Import module helps to populate your site with listings by importing objects in different formats, including RETS and IDX.
Tint College is a business learning hub located in Miami Lakes, FL that provides hands-on training courses in auto and window tinting. They offer a 5-day auto window tinting course, flat glass window tinting course, and safety and security film course. Classes are held in a state-of-the-art training center with both day and night classes available. Upon completion of the window tinting course, students will receive a certificate and the basic knowledge and skills to start their own window tinting business.
FuturMaster is a supply chain management software company that serves 500 companies across 65 countries with 10,000 users. It provides forecasting, planning, and optimization software as well as expert consulting services to help customers solve complex supply chain challenges and improve performance. The company is dedicated to designing and implementing supply chain solutions that deliver value and achieve business objectives for its customers.
El documento explica cómo elaborar objetivos generales y específicos para la enseñanza. Los objetivos generales describen lo que se desea lograr de manera general sin incluir resultados observables, mientras que los objetivos específicos detallan cómo alcanzar el objetivo general mediante la inclusión de contenidos temáticos, respuestas esperadas y condiciones de evaluación. Al redactar los objetivos se deben seguir criterios como dirigirlos al estudiante, usar lenguaje claro, ser observables y emplear verbos que indiquen la acción deseada
Cloudbyz ppm, integrated enterprise ppm-alm-apm on force.comDinesh Sheshadri
Cloudbyz PPM is an integrated enterprise project portfolio management (PPM), application life cycle management (ALM) and application portfolio management (APM) built on Salesforce 1 platform. Cloudbyz PPM is focused on providing agility, real-time visibility and enhanced collaboration and productivity to CIO / IT organization.
Este documento es un sermón del Rev. W.M. Branham titulado "¿Es tu vida digna del Evangelio?". En él, Branham habla sobre permanecer fieles a la Palabra de Dios y vivir vidas que sean dignas del Evangelio. También comparte una experiencia de caza en la que vio una manada de jabalíes y luego observó una gran nube misteriosa en el cielo. Exhorta a la congregación a amar a Dios y guardar Sus mandamientos.
Este documento apresenta instruções para a realização de uma prova de concurso público para o cargo de Assistente de Alunos. As principais informações são:
1) O candidato deve conferir seus dados e o cargo para o qual se inscreveu antes de iniciar a prova.
2) A prova terá duração de 4 horas e será composta por 50 questões objetivas de Língua Portuguesa, Legislação e Conhecimentos Específicos.
3) É proibido o uso de equipamentos eletrônicos, anotações, liv
The document discusses values and norms. It defines values as beliefs or philosophies that are meaningful to individuals. Norms are accepted or expected behaviors in a society. The document notes that values come from many influences like family, friends, school, society, and culture. It provides examples of common values like honesty, responsibility, and integrity. Values underpin everything people do and choices are based on values. Values driven organizations help staff feel a sense of belonging, identity, and purpose. Values driven leadership is purposeful, results oriented, and values each person.
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
Insider trading complete PPT (SEBI and Case Studies)Anant8
this powerpoint presentation includes complete information about Insider Trading, its regulation in INDIA and what are its penalties. It is fully made with all the matter available till date for the topic. It also includes some minor case studies for explaining further. The matter so prepared includes all relevant updates from Slideshare, SEBI website and Google major websites.
I personally prepared this file for my College Internal Examination and scored 10/10
This document summarizes literature on insider trading and insider trading regulation. It begins by outlining the evolution of research in this area from establishing the existence of insider trading to gauging regulation effectiveness. It then provides an overview of regulations in the US, Europe, Asia and India. Key findings discussed include evidence of abnormal stock returns from insider trading and debates around the costs and benefits of regulation. The document also examines elements that impact regulation effectiveness such as enforcement, penalties and disclosure requirements. Finally, it proposes areas for further research on improving regulation policies in Asia.
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".
This document provides an overview of initial public offers (IPOs) in India, including:
- IPOs allow unlisted companies to raise funds by offering shares to the public for the first time. They are an important process for transforming a company.
- Companies must be at an appropriate stage of growth and meet regulatory eligibility requirements before pursuing an IPO. The process takes at least one year to plan and execute properly.
- Key aspects of IPOs that are discussed include procedures and timelines, regulatory frameworks, eligibility requirements, pricing norms, and requirements for promoters' contributions and lock-ins. Book building and fixed price issue types are compared.
Insider Trading_Provisions Offence & Penalty_IICA_07 01 2013_MKManoj K
1) The document summarizes key provisions of SEBI's Prohibition of Insider Trading Regulations regarding insider trading, including definitions of insiders, connected persons, unpublished price sensitive information, prohibited activities, disclosure requirements, and penalties for violations.
2) It outlines the process for investigations into suspected insider trading, including the powers of SEBI to inspect books and records and issue directions. SEBI can issue directions like not dealing in securities or recovering profits.
3) It discusses disclosure requirements for substantial acquisitions and shareholding changes by promoters, directors and other insiders. Timelines of 2 working days are specified for different forms based on the transaction.
Business environment and their factors mehul chopra
these slides will help you in knowing that how different factors affect the business environment what is business environment and all. this will help you to enhance your knowledge more. and it describes all the factors clearly and in a very simple language
Este documento presenta las respuestas de un estudiante de Seguridad Pública a preguntas sobre la globalización en el contexto de México. Define la globalización como un proceso de integración económica, política y cultural entre países. Identifica que la caída del Muro de Berlín y el modelo neoliberal dieron origen a este fenómeno. Explica los efectos de la globalización en los ámbitos social, económico y político de México, así como los retos que enfrenta el país ante este proceso global, incluyendo la
The document provides a summary of MASTHAN.D's work experience and qualifications as an Oracle BI Publisher Consultant. It outlines his 3+ years of experience developing reports in BI Publisher 11g and Oracle Applications R12, including experience migrating Oracle Reports to BI Publisher, developing bursting and scheduling reports, and creating complex templates. It provides details on 3 projects for clients Bestseller, UAL Industries Ltd., and Albertsons, describing his roles and responsibilities which involved report development, customizations, and migrations.
Colombia, internet y movilización social AO2 Cabezas Maria JoseMajo Cabezas
El documento describe cómo las redes sociales y la tecnología móvil han facilitado la movilización social en Colombia. Los videos e imágenes en tiempo real compartidos en línea durante protestas y conflictos permitieron que el público se escuchara a sí mismo. Como resultado, se ha construido una nueva ciudadanía capaz de articular civismo y compromiso desde Internet, uniendo a miles de personas más allá de las distancias geográficas. Las redes sociales se han situado como protagonistas, permitiendo nuevas formas de activismo que desafían el orden establecido
The document outlines the professional experience and qualifications of an individual with extensive experience in afterschool program administration and STEM education. They have overseen large budgets and staff at multiple afterschool programs, with a focus on developing STEM/STEAM programming, academic enrichment, and family initiatives. The individual also has teaching experience and holds several certifications related to instructional technology and youth development.
El documento presenta un sermón religioso que habla sobre la fe y la sanidad divina. El orador comparte experiencias positivas de una reunión pentecostal y alienta a los creyentes a caminar en fe. También anuncia temas para futuros sermones y desea explicar la verdad bíblica sobre el matrimonio y el divorcio antes de irse.
How to export site objects to your real estate website.
The Import module helps to populate your site with listings by importing objects in different formats, including RETS and IDX.
Tint College is a business learning hub located in Miami Lakes, FL that provides hands-on training courses in auto and window tinting. They offer a 5-day auto window tinting course, flat glass window tinting course, and safety and security film course. Classes are held in a state-of-the-art training center with both day and night classes available. Upon completion of the window tinting course, students will receive a certificate and the basic knowledge and skills to start their own window tinting business.
FuturMaster is a supply chain management software company that serves 500 companies across 65 countries with 10,000 users. It provides forecasting, planning, and optimization software as well as expert consulting services to help customers solve complex supply chain challenges and improve performance. The company is dedicated to designing and implementing supply chain solutions that deliver value and achieve business objectives for its customers.
El documento explica cómo elaborar objetivos generales y específicos para la enseñanza. Los objetivos generales describen lo que se desea lograr de manera general sin incluir resultados observables, mientras que los objetivos específicos detallan cómo alcanzar el objetivo general mediante la inclusión de contenidos temáticos, respuestas esperadas y condiciones de evaluación. Al redactar los objetivos se deben seguir criterios como dirigirlos al estudiante, usar lenguaje claro, ser observables y emplear verbos que indiquen la acción deseada
Cloudbyz ppm, integrated enterprise ppm-alm-apm on force.comDinesh Sheshadri
Cloudbyz PPM is an integrated enterprise project portfolio management (PPM), application life cycle management (ALM) and application portfolio management (APM) built on Salesforce 1 platform. Cloudbyz PPM is focused on providing agility, real-time visibility and enhanced collaboration and productivity to CIO / IT organization.
Este documento es un sermón del Rev. W.M. Branham titulado "¿Es tu vida digna del Evangelio?". En él, Branham habla sobre permanecer fieles a la Palabra de Dios y vivir vidas que sean dignas del Evangelio. También comparte una experiencia de caza en la que vio una manada de jabalíes y luego observó una gran nube misteriosa en el cielo. Exhorta a la congregación a amar a Dios y guardar Sus mandamientos.
Este documento apresenta instruções para a realização de uma prova de concurso público para o cargo de Assistente de Alunos. As principais informações são:
1) O candidato deve conferir seus dados e o cargo para o qual se inscreveu antes de iniciar a prova.
2) A prova terá duração de 4 horas e será composta por 50 questões objetivas de Língua Portuguesa, Legislação e Conhecimentos Específicos.
3) É proibido o uso de equipamentos eletrônicos, anotações, liv
The document discusses values and norms. It defines values as beliefs or philosophies that are meaningful to individuals. Norms are accepted or expected behaviors in a society. The document notes that values come from many influences like family, friends, school, society, and culture. It provides examples of common values like honesty, responsibility, and integrity. Values underpin everything people do and choices are based on values. Values driven organizations help staff feel a sense of belonging, identity, and purpose. Values driven leadership is purposeful, results oriented, and values each person.
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
Insider trading complete PPT (SEBI and Case Studies)Anant8
this powerpoint presentation includes complete information about Insider Trading, its regulation in INDIA and what are its penalties. It is fully made with all the matter available till date for the topic. It also includes some minor case studies for explaining further. The matter so prepared includes all relevant updates from Slideshare, SEBI website and Google major websites.
I personally prepared this file for my College Internal Examination and scored 10/10
This document summarizes literature on insider trading and insider trading regulation. It begins by outlining the evolution of research in this area from establishing the existence of insider trading to gauging regulation effectiveness. It then provides an overview of regulations in the US, Europe, Asia and India. Key findings discussed include evidence of abnormal stock returns from insider trading and debates around the costs and benefits of regulation. The document also examines elements that impact regulation effectiveness such as enforcement, penalties and disclosure requirements. Finally, it proposes areas for further research on improving regulation policies in Asia.
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".
The document discusses insider trading law, including that:
1) Insider trading involves trading a company's stocks/securities using insider information.
2) It is not necessarily illegal for company officers/key employees to trade, as long as they are not using insider information to benefit themselves.
3) Someone who passes insider information to another person, like a spouse, can still be liable for illegal insider trading even if they did not trade the securities themselves.
TFW LTE 1032 ANM Assignments Position Paper Detail Submission Grade .pdftesmondday29076
TFW LTE 10:32 ANM Assignments Position Paper Detail Submission Grade Position Paper
Due: Jul 25, 2018 at 11:59 PM Topics for Final Paper-choose a topic from the following options
. Examine the issue of insider trading Analyze the ethical issues at stake (be sure to look at the
issue from both Utilitarian and Kantian perspectives). Do you believe insider trading is ethical?
Why or why not? Be sure to support your position with reasoned argumentation (including
showing why the alternative positions are ethically weaker than your own) Write a critical essav
(either in sunnort of Previous Next Dashboard Calendar To Do Notifications Inbox
Solution
Answer ) Insider Trading and Business Ethics
Many people are complaining insider trading since it is unfair for some people who do not have
confidential information about a certain company. People who do not have information that is
not yet into the public lose their confidence and trust towards the company. Therefore, many
companies lose potential investor from insider trading. Insider trading is a huge issue among
people. Insider trading can be an unethical; yet sometimes it can be ethical.
What is Insider Trading :Insider trading is a word that has many definitions and connotations and
which includes both legal and illegal activities. It can also be described as an insider trading of a
company’s stock, securities, bonds and stock options by persons with possible access to non-
public information about the company. Nevertheless, insider trading can take place lawfully
every day, when trading by the corporate insiders such as officers, directors, employees and large
shareholders to buy or sell stock in their own companies if this trading will not be taking
advantage of the non-public information and also be within the boundaries of the company’s
policies and the rules governing this trading. However, the term “insider trading\" is mostly used
to describe a practice in which an insider party trades based on non-public material information
gained through the performance of the insider’s obligation at the company, in violation of other
relationships of faith and assurance or otherwise when the non-public information was stolen
from the company. In other words, insider trading is buying, selling or dealing in securities,
bonds, and stocks of a company by a director, manager, or employee of the company who has
confidential information that is not accessible to the public.
Who is an Insider:An insider is a person who has entrée to the confidential information about a
company or corporation that will affect the stock price or might manipulate investors’ decisions.
This is “material information\". Moreover, most company executives clearly have important
information about the company. For example, the manager of sales knows how much the
company has sold and if it rallies, the estimates provided with the investors. Moreover, others
who work with the company also have material information; for instance, the accoun.
This document discusses insider trading rules and implications. It defines insider trading and outlines SEC rules prohibiting the use of non-public information to gain an unfair advantage. Violations can result in civil penalties, job termination, and criminal prosecution. Insider trading raises legal issues if individuals sue, and ethical issues regarding unequal access to information. It impacts markets by reducing efficiency and participation, and damages company reputation and public trust. Overall, regulations aim to promote fairness by requiring disclosure.
This document discusses insider trading and its implications. It defines insider trading as transactions in a company's securities by insiders based on non-public information that could impact stock prices. Insider trading has legal implications, as it is illegal if based on material non-public information. It also has ethical implications as it breaches fairness by giving some investors information not available to others. From a socio-economic perspective, insider trading may improve or reduce business value depending on production parameters, and could improve market efficiency by bringing stock prices closer to future prices.
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.
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 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.
This document discusses insider trading in India and the regulation of it by the Securities and Exchange Board of India (SEBI). Insider trading refers to trading securities based on exclusive, non-public information. It benefits those with access to information before it is released publicly. SEBI regulates insider trading and investigates complaints. Insider trading is difficult to eliminate due to human greed, but regulations aim to reduce its negative impacts and restore market stability. The study reviews insider trading provisions in India and emerging trends and issues related to regulation.
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.
This document discusses the concept of insider trading. It defines insider trading as when connected persons within a company buy or sell securities based on non-public, price-sensitive information for personal gain. Three key elements are provided: someone with insider information, they trade based on that information, and gain personally at the expense of others. An example of insider trading charges against HLL regarding its merger with BBLIL is described. The document also covers disadvantages of insider trading, why it needs regulating, whether it is unethical/illegal, and steps that can be taken to prevent it.
Big trailer dealing with the sec staffArthur Mboue
The document provides an overview of securities regulation and the SEC's role in regulating markets and enforcing disclosure requirements. It summarizes the SEC's mission to protect investors, maintain fair markets, and facilitate capital formation. It also outlines the SEC's organizational structure and divisions. Additionally, it reviews key events that led to the establishment of the SEC like the 1929 stock market crash and outlines major securities laws and acts passed over time like the Securities Act of 1933 and Securities Exchange Act of 1934.
This document presents a study on insider trading. It defines insider trading and outlines the objectives of studying it. It discusses the various forms insider trading can take, such as by corporate employees, consultants, friends and family of employees. It explains the regulatory aspects of insider trading in India including the definitions of unpublished price sensitive information and continuous disclosure requirements. The document analyzes why insider trading needs to be curbed and presents two case studies as practical examples. It concludes by discussing challenges faced by SEBI in investigating insider trading cases.
CROWDFUNDING 2022 - Crowdfunding from the Start-Up's Perspective Financial Poise
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Ethics is important in finance to maintain fairness and justice. Finance deals with money, markets, and managing funds. Ethics in finance means serving customers and companies with honesty and integrity. Some unethical issues include financial statement fraud, insider trading, hostile takeovers, and deception in markets. Companies use defenses like poison pills, greenmail, buybacks, and "people pills" against hostile bids. Upholding strong ethics benefits all 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.
Similar to Insider trading_Overview & Objective_IICA_07.01.2013_MK (20)
1. [ICLS Mid Career Training Programme]
07.01.2013 | Session I
Insider Trading: Overview & Objective
By
MANOJ KUMAR
Assistant Vice President
Corporate Professionals Capital Private Limited
2. 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 available
to general public.
• It is breach of a fiduciary duty or other
relationship of trust, and confidence.
• It is a crime if made to get wrongful gain or avoid
losses
3. Insider Trading: Genesis
• Insider Trading is one of the most prevailing form of Securities Market
Offence worldwide. The genesis Insider Trading is human GREED!
• It is really difficult for persons with privileged information which could help
him to gain substantial profit or allow avoidance of loss to control the
temptation of using these privileged information
• But possession of privileged information put the person in a fiduciary
position and misusing this position is a Breach of Trust and Fraudulent act
• When a company get listed - its promoters, directors and other key
employees as well as other persons who have more information than
general investors become the trustee of Investors’ interest and are in
fiduciary duty to not to use them for their personal benefit. Thus, Insider
Trading is a Crime
5. Insider Trading: International Perspective
• Initially, Insider Trading was considered fraud under Common Law in all
major jurisdictions and there was no specific law. Later with the
development of Capital Market specific laws were formulated:
• UK Common law prohibits Insider Trading. The relevant laws are
• The Criminal Justice Act 1993, Part V, Schedule 1, and
• The Financial Services and Markets Act 2000, which defines an offence of Market Abuse
• The USA Laws against Insider Trading:
• Securities and Exchange Act of 1934 (indirect)
• Insider Trading Sanction Act, 1984
• Insider Trading & Securities Fraud Enforcement Act, 1988
• United States Securities Exchange Commission Rule 10b5-1
• European Union Laws:
• European Community Directive Coordinating Regulations on Insider Trading, 1989
• Insider Dealing and Market Abuse Act of 1994
• Financial Markets Abuse Act in 2002
• EU Market Abuse Directive 2003
6. Insider Trading: Misappropriation Theory
A person commits fraud when he misappropriates confidential
information for securities trading purposes, in breach of a duty
owed to the source of information. [U.S. v. O’Hagen, 117 S.Ct. 2199, 2207
(1997)]
According to the SEC duty of trust or confidence arises when:
• Person agrees to maintain information in confidence.
• Person communicating material non-public information and person receiving
it have a pattern or practice of sharing confidences and there is an
expectation of confidence.
• Person receives material nonpublic information from spouse, parent, child, or
sibling.
7. Insider Trading: Privileged Information
Privileged Information is defined as:
“Information of a precise nature which has not been made public,
relating, directly or indirectly, to one or more issuers of financial
instruments or to one or more financial instruments and which, if
it were made public, would be likely to have a significant effect
on the prices of those financial instruments or on the price of
related derivative financial instruments”.
Same concept applies to every type of financial instrument.
A clearer definition of privileged information helps companies to
know what has to be publicly disclosed and therefore prevents
risk of insider trading.
8. Insider Trading & Corporate Governance
Insider trading has many governance implications, affecting:
• The organization of companies;
• The duties of directors of managing boards and supervisory
boards and other corporate insiders;
• The permitted flow of information within companies;
• The disclosure duties imposed to companies.
The main problem in insider trading is conflict of interests
and the misuse of power –in this case it relates to the power
over privileged information.
Therefore, there is a strong connection between corporate
governance and insider trading.
9. EU Directive unifies treatment given to price-sensitive
information and to privileged information.
The same concept applies either to:
• information to be provided by companies; and to
• Information not to be misused by insiders.
Earlier, companies were required to disclose or abstain (to misuse information) –
rather focusing on the prohibitive side of insider trading.
Now the Directive indicates companies should abstain and disclose.
Insider Trading: Abstain and Disclose
10. Insider Trading: Timely & Sufficient Disclosure
Greater concern with disclosure duties regarding privileged information.
Companies must inform the public as soon as possible of inside information
which directly concern them.
There should not Selective Disclosure;
Public access to information concerning such transactions as soon as
possible
Internet facilitates quick and cost-effective communication of price-
sensitive information to the public.
Imposes duty to disclose such information on the company’s website.
11. Persons who produce or disseminate research concerning financial
instruments or issuers of financial instruments and persons who
produce or disseminate other information recommending or
suggesting investment strategy, intended for distribution channels or
for the public, take reasonable care to ensure that such information
is fairly presented and disclose their interests or indicate
conflicts of interest concerning the financial instruments to which
that information relates.
Disclosure of conflict of interests
12. Conclusion
Based on the European experience, it is possible
to conclude that the modern approach towards
Insider Trading is:
• Broader - considering e.g. types of securities
concerned;
• More ambitious - given the range of
professionals involved (not only insiders);
• More connected with governance issues;
• Eminently preventive and more focused on
clear and effective guidance regarding timely
disclosure of price-sensitive information.
14. 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
19.11.1992
20.02.2002
11.07.2003
19.11.2008
16.08.2011
04.04.1992
Evolution of Law
16. • Rakesh Agarwal, MD of ABS Industries Ltd. (ABS), was involved in
negotiations with Bayer A.G (a company registered in Germany), regarding
their intentions to takeover ABS.
• Insider trading transaction:- Rakesh Agarwal, through his brother in law,
Mr. I. P. Kedia had purchased shares of ABS from the market and tendered
the said shares in the open offer made by Bayer thereby making a
substantial profit and thus was held for acting in violation of Regulation 3
and 4 of the Insider Trading Regulations.
Hon’ble SAT held that:
- Dealing in securities while possessing the unpublished price sensitive
information is not sufficient to hold the appellant guilty.
- The dealing should result in an advantage to him.
- The law prohibits the gaining of the unfair advantage by the insider.
- The appellant has acted in the interest of the company and was not held
guilty.
Rakesh Agrawal v. SEBI
MANU/SB/0208/2003
17. DSQ Holdings Ltd. vs. SEBI
(Decided on 15.10.2004 SAT)
• DSQB (earlier Usta Te Biotech Ltd.) was originally promoted by KND
Engineering & Technologies Ltd., jointly with Tamil Nadu Industrial
Development Corporation. The erstwhile management in DSQB entered
into an agreement in April, 1994 with Square ‘D’ group promoted by Shri
Dinesh Dalmia. Soon thereafter, the new management announced a rights
issue which opened for subscription on 03/07/1995 and closed on
02/08/1995.
• Insider trading transaction:- The appellants were found to have traded in
the securities of the DSQB during June, 1994 to December, 1994 and also
after the closure of the Rights issue while possessing UPPSI .
SAT held that the matters regarding the Rights issue of DSQB was first
discussed in the Board Directors Meeting on 30/07/1994. Thus the period
between 31/07/1994 to 30/09/1994 was the period under the price
information on the Rights issue was "unpublished and price sensitive“.
18. • Mr. Dilip Pendse was director of Tata Finance Ltd and Niskalp Investments
and Trading Co. Ltd. which is subsidiary of Tata Finance Ltd. Mr. Talaulikar was
also director of the above companies. TFL came out with rights issue between
30-3-2001 and 30-4-2001. It was observed that Niskalp, a subsidiary of TFL,
had suffered huge losses which was not disclosed in the Letter of Offer leading
to failure of offer.
• Insider Trading Transaction: Mr. Talaulikar transferred his family shares on 4-
4-2001 at a higher price while possessing UPSI that Niskalp had suffered
losses. It was alleged Mr. Pendse was guilty of Counseling and arranging
transfer of shares while in possession of UPSI.
SAT held that -
- Mr. Pendse and Mr. Talaulikar are both professionals and were insiders
therefore, Mr. Talaulikar required no advise from the Mr. Pendse as alleged.
- Mr. Talaulikar is responsible as he was the director of Niskalp at the time
when the funds were transferred.
Dilip S Pendse vs. SEBI
(Decided on 20.11.2008 SAT)
19. Samir C Arora vs. SEBI
(decided by SAT on15-10-2004)
• The merger of Digital Globalsoft (DGL) and HP ISO (Hewlett Packard) was proposed.
Digital appointed Bansi Mehta and Co. to recommend merger ratio. The merger ratio
was discussed in the Board Meeting of DGL on May 12, 2003. The Board, however, did
not announce the merger and decided to seek fairness opinion from a third party.
Later on, on June 6, 2003 the merger ratio was announced. This resulted in fall of price
of the DGL scrip from Rs. 500.50 to Rs. 371/-.
• Insider trading Transaction: The Appellant was alleged to have sold the entire holdings
of Alliance Capital Mutual Fund & Alliance Capital Management LP between May 8,
2003 and May 12, 2003 while possessing UPPSI.
The Hon’ble SAT held that
- Information accessed was not correct information.
- There was nothing to show how the information generated by Shri Bansi Mehta
could have reached the Appellant, particularly when SEBI has nowhere doubted the
credentials of Shri Bansi Mehta and Soonawala.
- Several other funds had also sold the same scrip in the same month in substantial
numbers
20. Rajiv B. Gandhi, Sandhya R. Gandhi & Amishi B. Gandhi Vs. SEBI
[2008] 84 SCL 192(SAT)
• Rajiv B. Gandhi (Gandhi) appellant No. 1 is the Company Secretary and
Chief Financial Officer of Wockhardt Limited (for short the company).
Sandhya Gandhi appellant No. 2 is his wife and Amishi Gandhi (appellant No.
3) is his sister.
• Insider trading transaction:- The appellants had sold 3600 shares on
21.1.1999 (before the board meeting held on April 22, 1999 at 11.30 a.m
called for demerger) and 22.1.1999 (in the first half hour before the market
could react to the news) on the basis of unpublished price sensitive
information.
The Hon’ble SAT held that
- The words “on the basis of” are significant and mean that the trades
executed should be motivated by the information in possession of the
insider
- Facts necessary to establish the contrary being especially within the
knowledge of the insider, the burden of proving those facts is upon him
21. S. Ramesh, S. Padmalata and Asis Bhaumik v. SEBI
[2005] 59 SCL 521(SAT)
• Appellant, Asis Bhaumik, Executive Director of Sahney Paris Rhone Ltd
(SPRL) and S. Ramesh was the Company Secretary of the Company. He
purchased shares of SPRL through Mr. Ramesh and his wife and through
his family members in and around August 1997 at Rs. 79 and later
tendering the shares in the open offer announced by RIH on behalf of
Delco Remi Ltd. in November 1997 at as Rs. 117.40 per share.
• Alleged Violations: Appellant had unfairly gained enrichment by buying
the shares and later tendering in the offer.
SAT held that the term "insider" has the following three essential
ingredients:
- Insider is a person; and
- who is connected or deemed to have been connected with the Company; and
- who is reasonably expected to have access by virtue of such connection, to
Unpublished Price Sensitive Information or who has received or has had access
to Unpublished Price Sensitive Information.
22. To sum up …..
INSIDER TRADING is the misuse of privileged position & breach of trust and
hence can disturb whole structure of Securities Market. It can also be a big
menace for small investors as they can loose their hard earned money in the
hands of corporate insiders, hence its effective prevention is very significant.
The importance of policing insider trading has assumed international
significance as regulators attempt to boost the confidence of investors
Prevention of Insider trading is necessary to create a Level Playing Field for
Investors in Capital Market
Effective measures to prevent Insider Trading would create trust &
confidence among the Investor Communities and help to develop securities
market
23. Thanking you ….
MANOJ KUMAR
Assistant Vice President
Corporate Professionals Capital Private Limited
D-28, South Extension –I, New Delhi-110 049
Ph: +91.11.40622200 | Fax: +91.11.40622201;
M: +91.9910688433 | E: manoj@indiacp.com