Friday, December 4, 2009

Insider Trading: Where Do We Draw the Line?

In an interesting two-part column series in the Mint (here and here), Govind Sankaranarayanan considers the broad academic debate surrounding insider trading. He makes at least two pertinent observations: (i) the line between insider trading that is considered acceptable and that which is improper is quite often blurred and difficult for regulators to segregate; and (ii) there is a need for regulators to undertake greater investigations and enforcements, which may not only act as greater deterrence but may also help set some boundaries between the permissible and the proscribed.

4 comments:

sheriyar said...

I am a barrister based in London. How many prosecutions are there in India for Insider Trading each year?

Umakanth V. said...

Sheriyar, some of the recent data regarding investigations and prosecutions on insider trading, as well as a gist of significant cases are available at www.sebi.gov.in/annualreport/0809/annualrep08-09.pdf.

Minneapolis DUI lawer said...

Until the lines are clearly drawn insider trading will remain a big problem throughout the world

Adnan said...

I am a compliance person in Fund Management in Pakistan. Can violation of a company policy allowing Fund Manager to personally trade - but after seeking approval - be classified under insider trading, front running or violation of fiduciary duty i.e. when security laws have not evolved to specifically address trading by Fund Managers