222

$show=home

Welcome to Accounting Education

The Accounting University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

Our library

Accounting | Auditing | Finance | Accounting software | Inspire

Take Your Course | Learn Accounting Skill

Choose Your Subject

$show=home

Latest $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Journal Entries $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Balance Sheet $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Insider Trading

0 0


Simple Meaning of Insider Trading

To purchase and sale of shares of companies without providing any personal information.

Explanation of Insider Trading

Sometime the employees, directors, officers, other managers and lawmakers are involve company's share trading activities which is illegal in some countries like India because it decreases the trust of company in shareholders and investors. In USA, no one can hide the information for trading the stocks of companies from public because it will increase the cost of capital. Employees knows the company's shares' face value and they are interested to buy at discount. So, it may also decrease the market value of shares. Sometime, it may be reason of financial disaster.

A CEO company sometime inform and provide the confidential information of company to his relatives or indicate to buy before increasing its price with any public disclosure. All these things are included in insider trading.

Insider Trading in India

In India for stopping Insider trading,  SEBI has strict rules regarding insider trading. SEBI says in clear words in his PDF notification

" No insider shall—
(i) either on his own behalf or on behalf of any other person, deal in securities of a company listed on any stock exchange 17[when in possession of] any unpublished price sensitive information.
SEBI also have right to punish illegal insider traders by penalizing and other legal actions.

6.0 Penalty for contravention of code of conduct.

6.1 Any employee/officer/director who trades in securities or communicates any information for trading in securities in contravention of the code of conduct may be penalised and appropriate action may be taken by the company.

6.2 Employees/officers/directors of the company who violate the code of conduct shall also be subject to disciplinary action by the company, which may include wage freeze, suspension, 53[ineligible] for future participation in employee stock option 54[plans], etc.

6.3 The action by the company shall not preclude SEBI from taking any action in case of
violation of SEBI (Prohibition of Insider Trading) Regulations, 1992.
New Decision of SEBI Against Indian Inside Trader


You had read yesterday news in which SEBI had decided to penalise of Rs 1 cr for insider trading on Adlabs founder.

Adlabs Founder found Inside Trader


Business Line Newspaper Covered it with following way

The Securities and Exchange Board of India has found Adlabs founder, Mr Manmohan Shetty, guilty of insider trading and slapped a fine of Rs 1 crore on him.

According to SEBI, Mr Shetty had violated the 24-hour embargo on directors, officers or designated employees of a company from undertaking any transactions when important corporate announcements are made. The regulator observed that Mr Shetty had sold 10 lakh shares of his company through his broker Gupta equities Pvt Ltd on BSE in two tranches. The first tranche of 7.5 lakh shares was sold between 10.11 and 10.13 a.m. The second tranche of 2.5 lakh shares was sold just after 3.15 p.m. the same day. The sale of these shares was reported to the Bombay Stock Exchange under bulk deal. The analysis of the order log on April 24, 2006 and the demat statement of Mr Shetty confirmed the transaction.

Categories:

Comments

In comment, you can give your feedback, reviews, ideas for improving content or ask question relating to written content.

 


Name

access,2,account,86,accountant,95,Accounting,685,accounting definitions,99,accounting ebook,3,Accounting education,85,Accounting Education Ads Help,1,accounting procedure,2,accounting process outsourcing,2,Accounting Software,52,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,Amortization,1,announcements,62,Annuity,2,assets,53,audit,47,auditing,41,Australia,2,B.Com.,22,balance sheet,88,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,3,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,30,calculator,4,canada,3,capital,72,capital budgeting,27,career,21,cash,40,cash book,8,cash flow statement,11,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,160,cost accounting,195,cost center,8,cost centre,1,CPA,2,credit,18,credit card,11,cs,10,currency,35,data,11,Debit and credit,17,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,246,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,823,Finance Journal Entries,6,Financial,134,financial accounting,147,Financial Statements,4,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,11,income,17,income statement,19,Income Tax,8,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,176,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,40,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,144,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,17,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,6,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,6,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,5,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,12,project management,11,provision,14,purchase,9,puzzles,2,quickbooks,3,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,SAP,3,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,219,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,70,study,21,subsidiary company,2,svtuition,14,swiss bank,2,tally,100,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,TallyPrime,1,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,14,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,9,VAT,22,Video,36,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: Insider Trading
Insider Trading
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpu8CnAQHZwAsQXRgpOFiupkAsVzDKX5rYY8nZve6tfaSPHBu8Jl1fxS-erdqgLq0OEOxNtrFO4jxrA2JXF-PE0zQ_ys1atWPJvmqeN3m3Vb5jrFhCdMScJKSRlt_ZDaWHnx8NiTyRrTCd/s320/SEBI+fined+1+Cr.PNG
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpu8CnAQHZwAsQXRgpOFiupkAsVzDKX5rYY8nZve6tfaSPHBu8Jl1fxS-erdqgLq0OEOxNtrFO4jxrA2JXF-PE0zQ_ys1atWPJvmqeN3m3Vb5jrFhCdMScJKSRlt_ZDaWHnx8NiTyRrTCd/s72-c/SEBI+fined+1+Cr.PNG
Accounting Education
https://www.svtuition.org/2010/06/insider-trading.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2010/06/insider-trading.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy