Insider Trading Violations in Indian Financial Markets: Issues

Some of you over the last 1 year have raised the issue of insider trading norms violation in Indian financial markets. Insider trading norm violation may mean company promoters or board members trading equity directly or indirectly via family/friends/associates when in possession of material information about the business without actually disclosing the same to the common shareholder or the public.

With this post we would like to specifically seek your inputs on any issues you have observed in regards to insider trading of public stocks/equity shares. If you would like to share a detailed post anonymously regarding a specific case, you may submit a new post with the Post Anonymously option.

We are committed to escalating collective concerns to the regulators and look forward to your inputs! more  

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View all 29 comments Below 29 comments
SEBI has all the powers from raid to summon to siezure of shares and money. SEBI is not toothless. more  
There is none to punish while Lawyers too Defend. Set aside of IPC on several Chapters itself is the proof . more  
Mr. Subramanian has said it all. Though I must say that SEBI has helped me out on more than one occasion. Once you know there has been insider trading done, the money that comes into the account of the perpetrator should be frozen until a proper inquiry is done. I don't think this can be so difficult given our expertise in the IT industry. more  
Indian Financial Market is full of manipulations. It requires to be revamped. more  
We all know what SEBI’s track record on acting against cases of insider trading.
I guess there has not been a single conviction for insider trade till now.
I think SEBI is toothless like our Election Commission. Don’t know what they lack- is it expertise or resources or technology or monitoring mechanism?
The Regulator’s track record says that it took up 85 cases based on Year 2017 & 2018 Annual Reports and could complete probe only in about 25 cases. Here also, who were the bandicoots, what were the gains they made, etc did not come out.
In my view, SEBI should be provided with powers like CBI and ED so that it can also act like a proper investigating agency when needed. Further such powers would allow the Regulator to deal with notorious business tycoons (in other words VIPs) without any hesitation and limitation.
Additionally CAG should also be provided powers with adequate resources to work jointly with SEBI in dealing with Insider Trade Malpractice.
Public Private Partnerships (PPP) should also be subjected to scrutiny even though technically they fall under the ambit of Private Sector. more  
Financial Wings are just sailing in the same Boat of Electioneering WHERE PUNISHMENTS ON OFFENCES RELATING TO ELECTIONS NEVER Enforced in India.
Same is in the Issues of Public Tranquility, Offences relating to RELIGIONS ; LAWFUL AUTHORITIES ; CONTTEMPT OF COURTS . more  
There have been a lot of reforms done be ompany law 2013, SEBI and Stock Exchanges to curb insider trading. However, unscrupulous people will find some loopholes to take advantage of material information for own advantage. Greed of the person is the sole motive. Only a few such cases will come light, only if the sums involved is high. more  
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