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In News
- Several Indian-origin persons have been charged in the US with insider trading in two separate alleged schemes in which they made more than five million dollars in illegal profits.
About Insider trading
- It basically refers to the buying, selling or trading of shares or other securities (such as bonds or stock options) of a listed company using unpublished price-sensitive information (UPSI) that can affect the stock price that has not been disclosed yet.
- Insider trading hurts the integrity of capital markets.
- Measures
- To prevent such acts and to promote fair trading in the market for the interest of common investors, the stock market regulator Sebi (the Securities and Exchange Board of India) has prohibited the firms from purchasing their own shares from the secondary market.
Unpublished price-sensitive information (UPSI)
‘Insider’
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Source:IE
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