Insider Trading

Nestle India received a warning from SEBI for a breach of insider trading regulations by a designated person of the company.

• About Insider Trading (Insider Dealing): Buying, selling, or trading of shares, bonds, or stock options of a listed company using unpublished price-sensitive information (UPSI).
• Definition of Insider (as per SEBI): Any person with access to price-sensitive information about a company's shares or securities.

o Association with the company in any capacity during the six months preceding the trade.

o Includes employees, directors, relatives, bankers, legal counsel, stock exchange officials, trustees, and AMC employees associated with the company.

• About Unpublished Price-Sensitive Information (UPSI): It refers to exclusive information related to a company’s stock prices, quarterly results, acquisition deals, mergers, or other sensitive activities that are not yet public.

o Insiders with access to UPSI may engage in illegal trading for personal gains.

• Regulation in India: Insider trades are regulated by SEBI under the Insider Trading Regulations, 2015. SEBI can impose fines and ban individuals or entities from trading in the capital market for violations.