Insider Trading and SEBI

What is it about?

In the mid-1990s, several cases of insider trading comprising reputed business groups were probed and brought to court by SEBI, but unlike the USA SEC, the Indian regulator was unable to secure a conviction in most of them. In the USA, insider trading activities are generally detected premature through various stock watch mechanisms of individual exchanges as well as the SEC. Both the exchanges and SEC examine any suspicious transactions, and heavy penalties are imposed on the violators either by the exchanges or SEC. Publicized cases of insider trading are remarkably rare in India.

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Why is it important?

More tougher laws work better in reducing the incidence of illegal insider trading and delayed disclosures to the regulating bodies in a developing country like India