Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<div type="image" title="For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire" height="900" width="1200" msid="114064202" hostid="261" caption="&amp;lt;p&amp;gt;For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire&amp;lt;/p&amp;gt;"></div> Once upon a time, there thrived a wild, wild land. Here, it was all about super high monetary stakes, lightning-fast trade deals, and bucketloads of money shifting hands every single second. This wilderness lured millions of individuals with the promise of super duper high returns. But, at what cost? Welcome to the unforgiving, ultra-risky wild west of <keyword id="19991165" type="General" weightage="20" keywordseo="Indian-equity-markets" source="keywords">Indian equity markets</keyword> called the <keyword id="145718" type="General" weightage="100" keywordseo="Futures-and-Options" source="Orion">futures and options</keyword>. Here, everyone seems to just fly right through the bright red-flagged warnings of financial risks to earn even a fraction of these promised returns. Most burn themselves in the process, but carry on nevertheless, as if nothing ever happened. <h2>Chasing the cloudy profits</h2>The data conclusively proves that every 9 out of 10 individuals only lost their hard-earned money in this land. But hey, what do the numbers know? Some hide their losses out of shame, some out of fear. The proponents, meanwhile, proudly boast unusually high returns on their investments, some open social media channels while others encourage their friends and family to take the plunge. Naturally, news of this unstoppable and humongous en-masse migration to the F&amp;O (futures and options) town has reached sheriff <keyword id="19901201" type="General" weightage="20" keywordseo="SEBI" source="keywords" meta.keywordsubtype="org" meta.entityname="SEBI" meta.hostid="261" meta.entityid="SEBI">SEBI</keyword>, galvanising them into action. After all, it was time to put a leash on this madness and save the common man. The inhabitants of this town doubled in the last 2 years, from 51 lakh in FY22 to 96 lakh in FY24—99.8% of whom were small and mid-income traders. But profits? Well, that's a different, rather completely absent story. <h2>Que Sera Sera, much?</h2>A recent report by SEBI (Securities and Exchange Board of India) that studied profits and losses made by traders in the equity derivatives segment between FY22-24 exposed the mad mania of futures and options trading in India, especially since the pandemic. Per the report, 91.1% of individual traders, or about 73 lakh traders had only lost money trading in futures and options in FY24. Between FY 22-24, over 1 crore traders, or about 92.8% of individual traders, had lost Rs 2 lakh each. But once bitten, twice shy? Well, not in this case. More than 75% of individuals, who had only made losses trading in F&amp;O in FY22 and FY23, continued to trade vigorously in FY24 as well, without any changes in the bottom line, which remained deep in red and negative. So, then all these traders must be uber-rich, with tons of cash and not much care to spare? Nope. 76% of traders in the F&amp;O space in FY24 had an annual income of less than Rs 5 lakh. 2 years ago, their share stood at 71%. And their choice of poison? Options! In FY24, 60% of traders made losses trading in futures, but a whopping 91.5% burnt their funds trading in options. Mind you, futures are riskier than options. With futures, which require significant capital investment, the buyer and seller both are contractually bound to adhere to the pre-determined strike price of the futures or options contract, irrespective of whether the prevailing prices are higher or lower (and thus, resulting in losses for either the buyer or seller). With options, since this adherence ain't necessary, individuals end up taking debt to take highly leveraged positions while trading here. <h2>Scale of the explosion</h2>Anyone who trades even infrequently will tell you that a demat account is the mitochondria or powerhouse of the trading cell. As of August 2024, India had over 17.1 crore <keyword id="20957284" type="General" weightage="20" keywordseo="demat-accounts" source="keywords">demat accounts</keyword>, which are a prerequisite for trading in the markets. India is the 9th biggest country in the world, in terms of total demat accounts. Did you know that our demat accounts are at par with the entire population of Bangladesh? Talk about scale! Just 4 years ago, in March 2020, this number was a mere 4 crore. Naturally, the total F&amp;O turnover on both <keyword id="20004725" type="General" weightage="20" keywordseo="NSE" source="keywords" meta.keywordsubtype="org" meta.entityname="NSE" meta.hostid="261" meta.entityid="NSE">NSE</keyword> and BSE has hit the roof, and also broken it. As of October 4, 2024, the total futures and options turnover on NSE stood at a massive Rs 4,78,27,27,750.30 crore. Good luck counting the thousands! <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total Turnover (Both Futures and Options) (In Rs Crore) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2020-21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">64,36,03,951.51 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2021-22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,69,52,33,134.47 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2022-23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3,82,23,26,468.06 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2023-24 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7,99,27,67,152.43 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source : NSE Another metric that underlines the meteoric growth of trading in India is the collection of STT or <keyword id="20930760" type="General" weightage="20" keywordseo="Securities-Transaction-Tax" source="keywords">Securities Transaction Tax</keyword>. As of September 2024, India's STT mop-up had gone past Rs 26,000 crore. Traders have to pay STT whenever they buy or sell any security in the market. So, more trading brings in more STT, and hence, more revenue for the government, so they're not really complaining. After all, this is certainly what they'd call enviable growth. As of August 2023, our STT collection stood at about Rs 21,599 crores. And in FY20-21, India's STT collection had been Rs 16,000 crore. If only our salaries also managed to grow at this rate! <h2>So, what's happening?</h2>Two things. One, it's the big bulls who are raking in all the moolah. And it's the younger lot (those aged under 30) who are propping them up for this. In FY24, 43% of individual traders in the market were less than 30 years of age. In just one year, this number has swelled by 12 percentage points from just 31% of individual traders. But who says ageing is bad? Wrinkles and silver hair seemingly have a propensity of incurring lesser losses in the market. In FY24, only 79% of traders aged above 60 years made losses, as compared to 93% of those aged below 30. Small and mid-income traders, which make up 98% of the total trader base, witnessed average losses per person of Rs 65,000 and Rs 1.5 lakh in FY24 in futures and options, respectively. The winner here? Clearly, the big bulls, who declared an annual income of over Rs 1 crore, ended up with average profits of Rs 96,000 per person this year. <h2>What’s the sheriff up to?</h2>The government has finally swung into action, hiking the STT rate for F&amp;O during this year’s budget. Effective October 1, 2024, the STT on futures stands at 0.02%, up from 0.0125%. For options, it was upped to 0.1% versus 0.0625% previously. Small margins, but huge impact oncoming. Says Puneet Sharma- CEO and Fund Manager at Whitespace Alpha, “SEBI aims to enhance market stability while safeguarding investor interests, reflecting the regulator's intent to balance risk management with market participation”. But this might come with its own share of challenges, too. “Stricter norms around leverage, transparency, and capital adequacy could limit the ability of investors to determine their own risk appetite, thereby stifling innovation in trading strategies. Over-regulation in an environment that thrives on strategic flexibility and creativity could dampen the market’s dynamism, affecting India's competitiveness in the global derivatives landscape”, he observes. SEBI recently came out with a set of guidelines that aim to thwart <keyword id="19972907" type="General" weightage="20" keywordseo="retail-investors" source="keywords">retail investors</keyword>' participation in futures and options and hinder them from taking undue risks. Here's a quick recap of what's to come for the residents of the F&amp;O town Margin Requirements: To battle the high volatility and chaos which is generally seen on expiry days(i.e the last mandated date, post which an option becomes invalid), SEBI will put in place an extreme loss margin (ELM) of 2% for all open short options on the day of expiry. Translation? Traders will need to pony up more cash upfront, leaving them with fewer funds to take on risky bets. It ain't a choice: No more of one expiry every single day! Going ahead, an exchange like BSE or NSE will just be able to offer weekly expiries, that too, only on one benchmark index, as opposed to an entire buffet it currently offers. At present, NSE offers weekly options contracts for its financial index, bank and midcap indices. But say goodbye to this, and hello to derivatives on only 1 index per exchange. Raising the bar: Effective November 30, 2024, the minimum contract value for index derivatives will be upped to Rs 15 lakh, from the present Rs 5-10 lakh. The hope is that by making it ultra-expensive to enter these trades, investors will be dissuaded from taking on risky trades. Pay upfront: Starting February 2025, those trading in options will have to pay the entire options premium upfront, even before their trades are executed. This is because options generally carry very high leverage, and paying a significant sum upfront can force traders to think twice. Invigilation Pro Max: Starting April 1 2025, to make sure that the number of positions for equity index derivatives does not slyly slip over the mandated limit, especially on expiry days when trade volumes are huge, the exchanges will have to take a minimum of 4 position snapshots randomly. The question is, will these injections of sobriety be enough to calm down the steroid-fed bull of the futures and options market in India? Well, only time and market turnover will tell! For more insights into the financial markets and business news, stay tuned to our site and social media handles. And don’t forget to subscribe to Business Insider India’s newsletters for your weekly dose of Simply Put! Disclaimer: The content on this website is for informational purposes only and should not be construed as investment advice. We recommend readers consult certified, qualified and registered advisors for professional and personalised financial advice.

SIMPLY PUT: SEBI is on a mission to take on the wild, wild west of futures and options in India. Here’s why, what, and how

<ul><li>India's market regulator's latest proposal includes a hotline and a reward for tip-offs on insider trading.</li><li>The proposed reward will be 10% of the trade value and capped at ₹1 crore ($145 million).</li><li>The Securities and Exchange Board of India has sought public comments on the proposal. </li></ul> If you know someone making a quick buck out of trading in shares based on insider information, and you are willing to report it to the regulator, there may be a reward for you. India's market regulator's latest proposal includes a hotline and a reward for tip-offs on insider trading. The proposed reward will be 10% of the trade value and capped at ₹1 crore ($145 million). The reward will kick in only if the guilty has to pay back an amount of at least ₹5 crore, a discussion paper released on June 10 said. The move aims to curb the rampant violation of norms in India where people who have access to unpublished price sensitive information about a company have been found trading in the same shares. Insiders usually indulge in insider trading through a proxy to whom the relevant information is communicated. Direct evidence of such communication is seldom available across various jurisdictions.Thus, detection and prosecution of insider trading remains a challenge, the SEBI paper said. The Securities and Exchange Board of India (SEBI) has sought public comments on the proposal. It would be compulsory for the informant to disclose the source of original information, and an independent office separate from the investigation and inspection wings or any of the dealing departments may be established by SEBI. The regulator has promised to protect to the informant and to make the information exempt from the Right To Information Act. At the same time, frivolous complaints may invite the regulator's wrath. The proposed policy is proposed to be brought into force by suitably amending the SEBI (Prohibition of Insider Trading) Regulations, 2015 with prospective effect. SEE ALSO: <a href="https://www.businessinsider.in/sebi-fines-nse-in-trading-case/articleshow/69125060.cms" data-type="tilCustomLink" target="_blank">India’s market regulator finally slapped a fine on the National Stock Exchange for giving preferential access to certain brokers</a>

You may earn up to ₹1 crore with a tip-off on insider trading sent to SEBI-- conditions apply

New Delhi, Dec 13 () General Insurance Corporation of India(GIC) has settled with regulator Sebi a case of alleged violation of insider trading norms by paying over Rs 1.23 crore towards settlement charges.
 The markets watchdog had conducted an investigation in the scrip of Axis Bank and observed that state-owned GIC had delayed in making disclosures with respect to change in its shareholding in the private lender as required under Prohibition of Insider Trading norms.
 However, before proceeding further and initiating proceedings, Sebi sent a notice of settlement to the reinsurer in October 2019 intimating that proceedings may be settled and disposed of upon filing of a settlement application along with remittance of over Rs 1.23 crore.
 In reply, GIC filed a settlement application with the regulator "without admitting or denying the findings of fact and conclusions of law, proposing to settle the defaults" and remitted the settlement amount.
 Accordingly, the Securities and Exchange Board of India (Sebi) in an order dated December 12 said "the proposed proceedings that could have been initiated for the defaults .... are settled qua the applicant."
 It further said if any representation made by GIC in the present settlement proceedings is subsequently discovered to be untrue, Sebi could take actions against it. SRS ANU
ANU

GIC settles insider trading case with Sebi

<keyword id="139797" type="COMPANY" weightage="20" keywordseo="The-Securities-and-Exchange-Board-of-India">The Securities and Exchange Board of India</keyword> (<keyword id="35210" type="ORGANIZATION" weightage="20" keywordseo="sebi">SEBI</keyword>) has imposed over Rs 96 lakh penalty on Divi's Laboratories' Chief Financial officer (CFO) L <keyword id="1269821" type="PERSON" weightage="20" keywordseo="Kishore-Babu">Kishore Babu</keyword> and his close associates including his son for allegedly indulging in <keyword id="6360088" type="DEFINITION" weightage="20" keywordseo="Insider-Trading">insider trading</keyword> in 2017. "Based on investigation conducted by SEBI, L Kishore Babu, <keyword id="9503208" type="UNKNOWN" weightage="20" keywordseo="praveen-lingamneni">Praveen Lingamneni</keyword>, Nagesh Lingamaneni, Sri Lakshmi Lingamaneni, D Srinivasa Rao, Radhika Dronavalli, Gopichand Lingamaneni and Pushpa Latha Devi were identified as "insiders" who had, directly or indirectly, traded in the scrip during the Investigation Period," SEBI said in its order issued on July 1. The market regulator alleged that Divi's, a city-based pharma company had made an announcement on July 10, 2017, during market hours that USFDA would lift import alert 99-32 on the company's unit-II at Visakhapatnam, which was price- sensitive information. Kishore Babu who is in a key managerial position allegedly had access to the information even before the announcement was made public, the market regulator said. <keyword id="185315" type="PERSON" weightage="20" keywordseo="G-Mahalingam">G Mahalingam</keyword>, wholetime director of SEBI, who issued the orders said the persons or entities mentioned may file their replies to the regulator within 30 days from the date of receipt of this order. They may also indicate in their replies whether they wish to avail an opportunity of personal hearing in the matter. GDK SS

SEBI alleges insider trading by Divi's Labs' CFO, imposes ₹96 lakh fine

Markets regulator SEBI has imposed a penalty of Rs 3 crore on five entities, including former promoters, in the case of <keyword id="9320523" type="UNKNOWN" weightage="20" keywordseo="alleged-insider-trading">alleged insider trading</keyword> in the shares of erstwhile <keyword id="122725" type="COMPANY" weightage="20" keywordseo="Bank-of-Rajasthan">Bank of Rajasthan</keyword>. Bank of Rajasthan (BoR) is now merged with ICICI Bank. The penalty has been imposed on <keyword id="9320524" type="UNKNOWN" weightage="20" keywordseo="rohit-premkumar-gupta">Rohit Premkumar Gupta</keyword>, Navin Kumar Tayal, Jyotika Sanjay Tayal, Advik Textiles &amp; Realpro Pvt Ltd and Kulwinder Kumar Nayyar, and the amount needs to be paid jointly and severally by them, the regulator said in an order. Tayals were dominant shareholders of BoR at that time. To check possible violation of insider trading norms, the regulator had conducted an investigation into the movement of BoR shares between May 7, 2010, and May 18, 2010. This period, which was prior to the announcement of an agreement between the dominant shareholders of <keyword id="9320522" type="COMPANY" weightage="20" keywordseo="bor-and-icici-bank-ltd">BoR and ICICI Bank Ltd</keyword> for a merger, witnessed considerable price and volume movement. During the probe, Sebi found that Gupta had traded in the shares of BoR on the basis of unpublished price-sensitive information with regard to negotiation of merger between BoR and ICICI Bank. It, further, said Gupta was funded by Advik Textiles, an entity controlled by Tayals, for indulging in insider trading in connivance with the others. Besides, the regulator noted Nayyar was the directors of Advik Textiles at the relevant point in time. Apart from this, he had been acting as director in various companies connected or related to the Tayals. The regulator noted that Advik Textiles and the Tayals were all connected. "Rohit (Gupta) dealt in the scrip of BoR while in the possession of and on the basis of UPSI in connivance with noticee no. 2 Sanjay, noticee no. 3, Navin and noticee no. 4 Jyotika," Sebi said in the order issued on Friday. "Rohit (Gupta) was able to indulge in the insider trading in the shares of BoR also because of the funds it received through noticee no. 5 Advik," it added. By indulging in such activities, they violated the provisions of insider trading norms, <keyword id="9320521" type="COMPANY" weightage="20" keywordseo="the-securities-and-exchanges-board-of-india">the Securities and Exchanges Board of India</keyword> (Sebi) said. The proceedings against Sanjay Tayal has been disposed of as he passed away in October 2018. Earlier, in the same case, the regulator in November 2017 barred these entities from the securities market for five years and directed them to disgorge illegal gains worth over Rs 95 lakh. SEE ALSO: <a href="https://www.businessinsider.in/india/news/goa-government-issues-advisory-for-gradual-relaxations-from-june-8-in-the-covid-19-lockdown-norms/articleshow/76116529.cms" data-type="tilCustomLink">Goa issues advisory for gradual relaxations in lockdown norms from June 8</a> <a href="https://www.businessinsider.in/science/news/spacex-just-launched-its-historic-mission-to-fly-nasa-astronauts-to-space/articleshow/76114304.cms" data-type="tilCustomLink">MUSK MAKES HISTORY: SpaceX just launched 2 people into orbit for the first time, kicking off the rocket company's most important mission since its founding 18 years ago</a>

SEBI slaps ₹3 crore fine on 5 entities in Bank of Rajasthan insider trading case

New Delhi, Dec 8 () To catch manipulators, markets regulator Sebi has started looking at matrimonial profiles of suspected persons to establish link with family members in front running cases.
The markets watchdog has been scanning Facebook accounts of suspected persons in cases related to insider trading cases.
 In the case of front running of several funds of Fidelity Group entities, Sebi has checked the profile of a trader Vaibhav Dhadda (who was using the alias Avi) at the matrimonial website www.jainshubhbandhan.com in order to establish his link with family members.
 The matrimonial website has mentioned Vaibhav as the son of Alka Dhadda, Sebi said in an interim order dated December 5.
 In addition, his passport details also showed Alka Dhadda as his mother.
 After gathering evidence, and also through scanning profiles at matrimonial website, about violation, Sebi has barred Vaibhav as well as his mother Alka and sister Arushi from the capital markets after its prima facie probe found that they were responsible for pocketing gains through front running activities.
 Also, the regulator has directed the family members to jointly open an escrow account with a nationalised bank and deposit alleged unlawful gains of Rs 1.86 crore made by them within 15 days.
 It has also frozen the bank accounts of the these persons to prevent them from diverting the wrongful gains made by them from the front-running trades.
 Front-running, in market parlance, means buying or selling securities ahead of a large order so as to benefit from the subsequent price move.
 The Sebi probe found that Vaibhav, being the trader on behalf of the Fidelity Group, was in possession of non-public information of the impending trades of Fidelity Group entities.
 The trading pattern of Alka and Arushi suggests that they took advantage of the impending trading activity of Fidelity Group entities by front-running and thereby generated profits for themselves by the price movement of scrips on account of large buy or sell orders of Fidelity Group entities, said Sebi.
 Dhaddas' modus operandi was to purchase a stock just ahead of a buy placed by a Fidelity Group entity on the same stock. Similarly, they would offload a particular scrip just ahead of a sell order placed by the Fidelity firm on the same stock.
 It further said that Vaibhav was operating from Hong Kong and had access the trading accounts of his two family members.
 The conducts of Avi, Alka and Arushi have prima facie defrauded the market as general investors have suffered due to their front-runing activity, it said.
 Front-running activities of these persons resulted in benefit of over Rs 1.85 crore in the trading account of Alka and Rs 28,500 in the trading account of Arushi, the regulator said.
 By indulging in front running trades, these persons violated PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) norms.
 Earlier in the insider trading case of Deep Industries, Sebi had scanned Facebook accounts of suspected persons in order to ascertain whether they were connected entities.
 The regulator had found that the persons involved in insider trading were friends on the social networking site and liked each others photos posted on the platform.
 In addition, the markets watchdog goes through Facebook accounts of suspected persons, with 'friends' and 'likes' posts being scanned in insider trading cases.

A matrimonial website helped crack a share market scam in India

New Delhi, Nov 21 () Kiran Mazumdar Shaw, lead independent director of <keyword id="6354512" type="COMPANY" weightage="20" keywordseo="Infosys">Infosys</keyword>, has settled with Sebi a case of alleged delay in making disclosure regarding change in her shareholding in the IT company by paying over Rs 3 lakh as settlement charge. Mazumdar Shaw, who is also a chairman of Biocon, was alleged to have violated provisions of the Prohibition of <keyword id="6360088" type="DEFINITION" weightage="20" keywordseo="Insider-Trading">Insider Trading</keyword> (PIT) regulations. The Securities and Exchange Board of India (SEBI) had conducted an examination in the matter of Infosys and observed that Mazumdar Shaw had delayed making the requisite disclosures with respect to change in her shareholding in the company.
 However, before proceeding further and initiating proceedings against her, the regulator sent notice of settlement to her, intimating that the proceedings may be settled and disposed of upon filing of an application settlement mechanism of Sebi along with remittance of settlement amount of over Rs 3.01 lakh.
 Accordingly, she filed a settlement application without admitting or denying the default and remitted Rs 3,01,758 in September 2019.
 "This order disposes of the proceedings that may be initiated for the defaults," Sebi said in an order passed on Wednesday.
 Besides, it added that enforcement actions including commencing proceedings against the applicant may be taken if any representation made by the applicant is subsequently discovered to be untrue.
 In February, Infosys had said that Mazumdar Shaw had inadvertently through her portfolio management services sold 1,600 shares of the company without obtaining pre-clearance of trade.
 Following a review by the audit committee of the company's board of directors that determined that there was a violation of the Infosys' insider trading policy and the PIT norms, a penalty of Rs 9.5 lakh was imposed on Mazumdar Shaw. SRS MR
MR

Kiran Mazumdar Shaw settles alleged insider trading case with Sebi in Infosys matter

New Delhi, Jan 31 () Capital markets regulator Sebi on Friday disposed of an alleged insider trading case against former independent director of SpiceJet, K R Sasiprabhu, saying the charges could not be established against him.
 It had been alleged that Sasiprabhu had traded in the scrip of SpiceJet while in possession of unpublished price sensitive information (UPSI) pertaining to the company's quarterly financial results.
 Sasiprabhu, who was appointed as an independent director of SpiceJet on December 1, 2015, had resigned from the position in May, 2018, the Securities and Exchange Board of India (Sebi) noted.
 The regulator conducted an investigation in the scrip of SpiceJet to ascertain possible violation of Sebi's prohibition of insider trading (PIT) norms by certain entities as well as to find out whether requisite compliances had been observed by the airline and its officials involved for preparation of financial results for December 2015 quarter.
 The probe found that the UPSI relating to financial results for the quarter ended December 2015 came into existence from January 6, 2016, whereas, Sasiprabhu bought 2,000 shares of SpiceJet on January 7, 2016.
 Sebi, however, noted that following his appointment in December 2015, he attended the company's board meeting for the first time on January 22, 2016, the date on which the board approved the financial results. Subsequent to this, the results were disseminated by SpiceJet.
 He came to know of the proposed board meeting and details of financial results on January 15, 2016, and January 21, 2016, respectively and that he traded in the scrip much before he came to know of the proposed board meeting and financial results, the regulator noted.
 "I conclude that the charge against the noticee (Sasiprabhu) that he had traded in the scrip of SpiceJet while in possession UPSI, does not stand established," Sebi Adjudicating Officer B J Dilip said in an order.
 Consequently, the adjudication proceedings initiated against Sasiprabhu has been disposed of, he added. SP ANS
ANS

Sebi disposes of insider trading case against SpiceJet's former independent director

New Delhi, Jan 29 () Markets regulator Sebi has disposed of adjudicating proceedings against Abhijit Rajan, former chairman of Gammon Infrastructure Projects, in an alleged insider trading case.
 It was alleged that Rajan violated the code of corporate disclosure practices under prevention of insider trading norms.
 "I conclude the allegations levelled in the said SCN (show cause notice) against the noticee i.e Abhijit Rajan does not stand established," Sebi Adjudicating Officer Sangeeta Rathod said in an order passed on Tuesday.
 The regulator undertook a probe in the scrip of Gammon Infrastructure Projects Ltd (GIPL) during July-September 2013 following an input from the NSE concerning the possibility of certain entities having traded in the company's shares on the basis of unpublished price sensitive information (UPSI).
 The matter pertains to Gammon Infra's board decision to approve termination of tie up with Simplex Infrastructure. It was alleged that the termination decision should have been intimated to exchanges immediately, but it was done with a delay of 26 days.
 Rajan, being director of GIPL during the relevant period attended the board meeting, and was alleged to have violated the code of corporate disclosure practices under insider trading norms.
 He contended that GIPL's investment in the Simplex project in the financial year represented only 0.05 per cent of the GIPL's order book value at the end of August 2013, which cannot be construed as price sensitive.
 "It cannot be concluded that the said information is UPSI and that the disclosure of the same to the exchange on a particular date was relevant at that juncture. With regards to the code of conduct followed by the GIPL, I do not observe any deviation of MCC (model code of conduct) from the insider trading code of the GIPL as available on record," Rathod said.
 Accordingly, the Securities and Exchange Board of India (Sebi) disposed of the adjudication proceedings initiated against Rajan.
 Earlier, the Securities Appellate Tribunal (SAT) in November 2014 had set aside a Sebi order that banned Rajan from the capital markets for alleged insider trading.
 In July 2014, the regulator had barred Rajan after finding him guilty of trading in shares on the basis of unpublished price sensitive information. It had also directed him to disgorge an amount of Rs 1.09 crore, which was already deposited by him in an escrow account. This direction was further confirmed by the regulator through a confirmatory order passed in March 2015.
 This was one of the few cases where the CMD of a company came under the scanner in an insider trading case.
 A Sebi probe had found that Rajan had traded on the basis of unpublished price sensitive information pertaining to cancellation of two shareholder agreements of Gammon Infra with Simplex Infrastructure.
 The tribunal had set aside the Sebi's order saying the information in itself was not price sensitive.
 "Considering the minor proportion of the transaction to the turnover of GIPL (Gammon Infra), in our view the information cannot be termed as price sensitive information. Simplex had not even disclosed the said information to the stock exchanges," the tribunal had said.
 Further, the tribunal had said that even if it is assumed that the information is price sensitive, "still the appellant cannot be blamed of insider trading for the reasons that he did not trade on the basis of the information".
 The tribunal had noted that Rajan was able to show that he needed the money that he garnered from sale of shares for infusing capital in one of his firms that was undergoing corporate debt restructuring (CDR) during the time.
 Besides, he was even required to sell his agricultural land and flat.
 "The appellant was able to show his dire need to infuse fund in the entity under the master restructuring agreement to implement a CDR package," the tribunal had said, adding that the amount was deposited in the account of CDR scheme. SP ABM
ABM

Sebi disposes of insider trading case against Gammon Infra's former CMD

New Delhi, Jan 14 () Regulator Sebi has barred Nishat Shailesh Gupte, a former official of Diageo Plc, from the capital markets for seven years for indulging in insider trading activity in United Spirits.
 Besides, Sebi has directed three persons related to Gupte -- Poonam Haresh Jashnani, Haresh Parmanand Jashnani and Varun Haresh Jashnani -- to disgorge unlawful gains totalling over Rs 1 crore made by them, along with interest, in the insider trading case.
 Sebi said Gupte, who was the Global Business Development Manager (M&amp;A) of Diageo, was in possession of unpublished price sensitive information (UPSI) relating to the open offer for acquisition of shares of United Spirits Ltd (USL) by Relay BV together with Diageo Plc as the person acting in concert (PAC). 
 Gupte was part of the core team which represented Diageo/PAC in the transaction to consolidate shareholding of the acquirer in USL and was guiding the team since the beginning of the transaction lifecycle.
 Further, the regulator said Poonam, Haresh and Varun also indulged in insider trading activity in USL based on the information passed by Gupte.
 Gupte is the son-in-law of Poonam and Haresh, and brother-in-law of Varun.
 "Considering the close family relationship amongst Nishat, Haresh, Varun and Poonam, it can reasonably be concluded that it was Nishat who had communicated the UPSI to them," Sebi said in an order dated January 10.
 Based on trading while in possession of UPSI, Poonam, Varun and Haresh have made ill-gotten gains, it added.
 By indulging in such activities, these persons violated Sebi's PIT (Prohibition of Insider Trading) regulations.
 Accordingly, the Securities an Exchange Board of India (Sebi) barred Gupte from the capital markets for a period of seven years. Besides, he has been restrained from associating himself with any listed public company.
 Further, Poonam, Haresh and Varun have been asked to disgorge wrongful gains of about Rs 45.44 lakh, Rs 29.24 lakh and Rs 26.18 lakh respectively along with 12 per cent interest per annum. They need to pay the amount within 45 days.
 In case they fail to pay the wrongful gains along with interest as directed, Sebi will initiate recovery proceedings. SP
RVK

Sebi bans former Diageo official for 7 yrs in insider trading case

New Delhi, Jan 24 () Capital markets regulator Sebi on Friday disposed of a case of alleged insider trading in the scrip of Pantaloon Retail India Ltd (PRIL) against an individual.
 The firm is now known as Future Enterprises Ltd.
 Abhishek Jalan was alleged to have violated Prohibition of Insider Trading norms by allegedly trading on NSE in the scrip of PRIL DVR in the futures segment while in possession of unpublished price sensitive information on account of him being part of the senior management of the firm.
 However, the regulator, from the submissions of Jalan, noted that he had placed a sell order through a web based application provided by his broker and mistakenly selected PRIL futures instead of futures of GMR Infrastructure Ltd.
 Upon realising his mistake, he bought the same quantity of PRIL futures on market price to square off the futures position with a time lapse of around 3 minutes.
 Besides, he incurred a net loss of Rs 350 on account of the transactions.
 The regulator thus disposed of the proceedings against Abhishek Jalan.
 In a separate order, Sebi dismissed the proceedings against three entities -- Manjusha Lodha, ABL Infrastructure Pvt Ltd and Surinder Singh Kadyan -- for alleged irregularities while dealing in scrip of Indiabulls Integrated Services Ltd, formerly known as SORIL Holdings and Ventures Ltd.
 Allegations of disclosure lapses were levelled against Lodha and ABL Infrastructure with respect to change in their shareholding in the firm. 
 Surinder Singh Kadyan was alleged to have violated insider trading norms. However, Sebi disposed of the proceedings considering their submissions. SRS 
RVK

Sebi disposes of insider trading case against individual in Pantaloon Retail India scrip

New Delhi, Jan 8 () Markets regulator Sebi has settled an alleged insider trading case with an individual in Sabero Organics Ltd matter on payment of over Rs 59 lakh as settlement charges and disgorgement of illegal gains.
The regulator during a probe between May-June 2011, noted that Coromandel, after a meeting with the representatives of Sabero Organics, informed the exchanges about the acquisition of the latter by it.
The information related to the acquisition of Sabero Organics by Coromandel was deemed to be a price sensitive information and the period between May 15, 2011 to May 30, 2011 was unpublished price-sensitive information (UPSI) period, Sebi said.
The individual -- R Sridhar -- by trading in the scrip of Sabero during the UPSI period made a profit of Rs 12,83,604.
Thus, Sridhar was alleged to have violated Prohibition of Insider Trading Regulations.
However, pending the proceedings, Sridhar filed a settlement application with Sebi and proposed to pay Rs 33.46 lakh as settlement amount along with Rs 12.83 lakh of illegal gains and Rs 12.85 lakh of interest amount.
The total amount after the approval from the high powered advisory committee of Sebi was remitted by Sridhar in December 2019.
Accordingly, the probe in the matter has been disposed of by Sebi after the applicant paid the settlement amount.
However, the regulator has said proceeding in the matter may be restored if representations made by the applicant are subsequently found to be untrue. SRS
BAL

Sebi settles insider trading case in Sabero Organics matter for Rs 59 lakh

New Delhi, Dec 24 () Markets watchdog Sebi on Tuesday came out with a new mechanism to reward whistleblowers and other informants for sharing information about insider trading cases.
 Under the new framework, it would be mandatory to disclose the source of information, besides, confidentiality regarding the identity of the informant would be protected, the regulator said in a statement.
 Insider trading refers to trading of securities while in possession of Unpublished Price Sensitive Information (UPSI) about the particular securities.
 The Securities and Exchange Board of India (Sebi) said,"reward would be given in case the information provided leads to a disgorgement of at least Rs 1 crore in accordance with the PIT (Prohibition of Insider Trading) Regulations".
 The regulator said that Office of Informant Protection (OIP) has been established by it as an independent office for receiving and processing Voluntarily Information Disclosure Form (VID form).
 The OIP would serve as a medium of exchange between the informant or legal representative and the regulator.
 According to Sebi, an informant would have to voluntarily submit original information pertaining to any violation of insider trading laws to the OIP, through a VID form. The information would have to be submitted by the informant directly in which case his identity would be required to be revealed at the time of submission of the VID form.
 In case, the information is submitted through a legal representative, the identity of the informant is not required to be revealed at the time of submission of VID form. However, the identity of the informant would be required to be revealed prior to payment of reward, if any, it added.
 "Every person required to have a code of conduct under PIT regulations shall ensure that such a code of conduct provides for suitable protection against any discharge, termination, demotion, suspension, threats, harassment, directly or indirectly or discrimination against any employee who files a VID Form," Sebi noted.
 The PIT (Prohibition of Insider Trading) Regulations were amended in September by inserting a new chapter dealing with informant policy in relation to insider trading laws. The new amendments will come into force with effect from December 26, 2019.
 Sebi said that VID Forms will be available on its website from December 26.
 Earlier in June, the regulator came out with this proposal in order to curb insider trading and had sought comments from public on the same. SP SHW
SHW

Insider Trading cases: Sebi comes out with new informant mechanism to reward whistleblowers

There is no country in the world in terms of "margin protection" better than <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword> where technology is extensively used to protect clients' securities, <keyword id="63783" type="General" weightage="50" keywordseo="securities-and-exchange-board" source="Orion">Securities and Exchange Board</keyword> of India (<keyword id="35210" type="General" weightage="100" keywordseo="sebi" source="Orion">SEBI</keyword>) chairperson Madhabi Puri <keyword id="1040391" type="General" weightage="80" keywordseo="buch" source="Orion">Buch</keyword> said on Friday. The SEBI chief said that foreign investors often tell her that she was fortunate to have in the country a culture of data and technology, which is making the role of the capital market regulator effective. "There is huge technology change in the entire market. It has never been done anywhere in the world ever...and we did it in India. So, today in terms of margin protection - the protection of client's securities - there is nobody better in the world than India," Buch said in her lecture on 'Data and Technology in the Capital Market'. The event was organised by the Indian Institute of Management-Bangalore to mark its 49th Foundation Day celebrations on Friday. Explaining how data is used for surveillance to check malpractices during trading, the SEBI chairperson said the study of algorithm and alerts make it easy to study the trading pattern of people and understand that this is 'insider trading'. SEBI has also embedded a QR code which, Buch said, was quite radical. When it is scanned, one can see a video clip, which showed the 'Delta' positions of the particular individual whose trading pattern is reflected. "You look at that film, and you say, 'this is insider trading. This cannot be anything else'. So, we use data in our surveillance," the SEBI chief explained. The regulatory body is also using technology to check 'front running' in the mutual fund market. She, however, said SEBI too had some setbacks because the regulation has not kept pace with technology but it is trying to fix the problem in the next few months. The SEBI chief said the board is now using 'Suptech' or Supervisory Technology as well to inspect and make sure that everybody's following the rules. Citing an example from the mutual fund industry, she said SEBI started collecting data from all the 44 mutual fund houses operating in the country. As the data started coming in, SEBI told the industry that they are going to develop 80 algorithms and explained to them the logic and the interpretation of SEBI laws in the light of the algorithm emanating from the data. According to Buch, many of her colleagues were quite upset as they were against revealing the algorithm and questioned the objective behind it. Buch, however, said she gave an explanation that satisfied them. "The objective of the regulator is not to catch people doing bad things but to prevent them from doing bad things. So, we declared that we are now going to make this 80 algos," she explained. Today, SEBI conducts inspections every quarter, which otherwise could be done on a daily basis, because the board wanted to give the industry time to find their own mistakes and fix them instead of showing up every day, Buch said. "Now, this is only the beginning because this is the easy stuff. So, what's the tough stuff? The tough stuff is where you have to try and find violations of the spirit of the law, and not the letter of the law," the SEBI chief said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/global-health-that-operates-medanta-hospitals-to-open-its-2205-cr-on-november-3/articleshow/95142371.cms">Global Health that operates Medanta Hospitals to open its ₹2,205 cr on November 3</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/pm-modi-lauds-paytm-commends-reach-of-digital-payments-in-far-off-places/articleshow/95144686.cms">PM Modi lauds Paytm, commends reach of digital payments in far-off places</a>

You Searched For "SEBI insider trading" and got 14 results