SEBI has recently passed several orders against insider trading cases highlighting its deep roots in functioning of corporate India. The market regulator also pointed out that many market participants, namely, promoters, senior company officials, investment bankers and some high profile investors have access to price sensitive information and they use such information to trade in the stock markets.
As per the SEBI (Prohibition of Insider Trading) Regulations, 2015, any person who is in possession of Unpublished Price Sensitive Information (UPSI) is regarded as an insider. Examples of Price Sensitive Information are financial statements, dividends, any merger and acquisition proposal etc. When such information is not in the public domain, it is termed as unpublished price sensitive information. Any disclosure of UPSI by the insider and subsequent trading of the company’s shares on the basis of such information is considered illegal as per the regulatory provisions. Here is a brief description of few of the prominent cases where SEBI has cracked down on insider trading:
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