Insider Trading
Daily Highlights (2 min series) - English
8th March 2025
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Trading (Insider Dealing): Buying, selling, or trading of shares, bonds, or stock options of a listed company using unpublished price-sensitive information (UPSI).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- About Unpublished Price-Sensitive Information (UPSI): It refers to exclusive information related to a company’s stock prices, quarterly results, acquisition deals, mergers, or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.
Detailed Solutions & Explanations
