{"id":30653,"date":"2025-05-04T10:57:29","date_gmt":"2025-05-04T05:27:29","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=30653"},"modified":"2025-05-19T12:33:10","modified_gmt":"2025-05-19T07:03:10","slug":"insider-trading","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/insider-trading\/","title":{"rendered":"Insider Trading"},"content":{"rendered":"<h2>Insider Trading Latest News<\/h2>\n<p>Nestle India recently said it received a warning from the country\u2019s markets regulator for a breach of insider trading regulations \u201cby a designated person of the company\u201d.<\/p>\n<h2>About Insider Trading<\/h2>\n<p>Insider trading, also known as <strong>insider dealing<\/strong>, is the malpractice of <strong>selling or buying a company&#8217;s securities by the insiders of a company.<\/strong><\/p>\n<ul>\n<li><strong>Who is an insider?<\/strong>\n<ul>\n<li>The Securities and Exchange Board of India (SEBI) defines an \u2018insider\u2019 as <strong>someone who has access to price-sensitive information <\/strong>about a particular <strong>company&#8217;s shares or securities.\u00a0<\/strong><\/li>\n<li>An insider can be anyone who has been <strong>associated with the company <\/strong>in some way<strong> during the six months preceding the insider trade.<\/strong><\/li>\n<li>That person could be an <strong>employee, a director, relative, banker or a legal counsel <\/strong>to the company, or even <strong>an official of the stock exchanges,<\/strong> trustees or employees of an asset management company (AMC) that worked with the company.<\/li>\n<li>Insiders, who have access to confidential and exclusive information about the issuer of a particular security or stock, <strong>benefit from buying or selling undisclosed securities before they fluctuate in price.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>What is Unpublished Price Sensitive Information (UPSI)?<\/strong>\n<ul>\n<li>UPSI refers to a piece of <strong>exclusive information related to a firm\u2019s <\/strong>stock prices, quarterly results, acquisition deals, mergers, or any kind of sensitive activities that have <strong>not been shared with the public at large.\u00a0<\/strong><\/li>\n<li>When insiders are able to access the UPSI, they illegally conduct trade dealings for personal gains.<\/li>\n<\/ul>\n<\/li>\n<li>Insider trading is one of the most serious malpractices that exists in the market.<\/li>\n<li>In India, insider trades are <strong>regulated by the SEBI under the Insider Trading Regulations, 2015.\u00a0<\/strong>\n<ul>\n<li>To prevent such acts of insider trading and to promote fair trading in the market for the interest of common investors, <strong>SEBI has prohibited the firms from purchasing their own shares from the secondary market.<\/strong><\/li>\n<li>SEBI can<strong> impose fines and prohibit individuals or entities from trading<\/strong> in the capital market <strong>if found in violation of rules.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li>For example, a company director informs his friend about a yet-to-be-declared deal, and the latter disseminates that information to his colleagues, who then buy that company\u2019s stocks.\u00a0\n<ul>\n<li>Then, the manager, his friend, and his colleagues are liable to be booked by SEBI for violation of PTI (Prohibition of Insider Trading) Regulations.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Insider Trading FAQs<\/h2>\n<p><strong>Q1<\/strong>. Is insider trading legal in India?<\/p>\n<p><strong>Ans<\/strong>. No, insider trading is illegal in India.<\/p>\n<p><strong>Q2<\/strong>. What is front-running?<\/p>\n<p><strong>Ans<\/strong>. Front Running involves trading securities based on knowledge of pending orders or anticipated market movements.\u00a0<\/p>\n<p><strong>Q3<\/strong>. What is an asset management company (AMC)?<\/p>\n<p><strong>Ans<\/strong>. An AMC is a financial institution that pools funds from multiple investors and invests in various financial instruments, such as stocks, bonds, and real estate.<\/p>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/www.thehindu.com\/business\/nestle-india-receives-warning-from-sebi-for-insider-trading-breach\/article69304315.ece\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Insider Trading is the malpractice of selling or buying a company&#8217;s securities by the insiders of a company<\/p>\n","protected":false},"author":5,"featured_media":46722,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[294],"class_list":{"0":"post-30653","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-insider-trading","9":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/30653","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=30653"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/30653\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/46722"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=30653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=30653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=30653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}