Insider trading in india an analysis of

On Mar 28, Abstract Insider trading is mal practices of those who are directly related to a company or body corporate or has any relation with the company. These persons use their position to get price sensitive information related to value of shares etc. The Indian laws, which govern it, are not sufficient enough regarding transnational operation. So, they should be amended to incorporate such provisions to protect interest of the investors.

Insider trading in india an analysis of

Insider trading is an unfair practice, wherein the other stock holders are at a great disadvantage due to lack of important insider non-public information.

However, in certain cases if the information has been made public, in a way that all concerned investors have access to it, that will not be a case of illegal insider trading.

Insider trading in india an analysis of

All the options that have an index as underlying are known as Index Options. The two most basic and popular index options are Call Option and Put Option.

Further, they may be American Options or European Options. A Call Option gives the buyer a right to buy a specified quantity of an underlying index at a pre-decided price.

For this privilege, the buyer of the Call Option pays an upfront premium to the seller or writer. A Put Option gives the buyer the right to sell a specified quantity of an underlying index at a pre-decided price; for this privilege the buyer of the Put Option pays an upfront premium to the Put Option seller or writer.

BREAKING DOWN 'Insider Trading'

An American Option may be exercised anytime before the expiry of the contract whereas a European Option can be exercised only on the day of expiry. Consider an index, say the Nifty50 index of NSE. On the link below you can find the most actively traded Nifty50 options on the NSE: Sum of strike price of each contract traded today X No of underlying asset in each contract.Abstract.

Insider trading, the occurrence of which has become rampant in many industrialized countries, the research seeks to examine the legal mechanism prevalent in India and assess the extent to which it has been implemented by interpreting cases taken up by the Courts.

Insider trading is an unfair practice, wherein the other stock holders are at a great disadvantage due to lack of important insider non-public information. However, in certain cases if the information has been made public, in a way that all concerned investors have access to .

4 An Analysis of Corporate Insider Trading and Earnings Announcements in India Murugappa (Murgie) Krishnan, Srinivasan Rangan6 1. Introduction Corporate insiders have at least two major avenues to potentially influence the.

Insider trading in India is basically determined by SEBI laws which govern the whole trading in national stock exchange or Bombay stock exchange.

What Is Insider Trading?

The main aim of this law is that to ensure traders that no one is gained by trading on ‘insider’ or ‘unpublished’ information- information that is not made public. In the authors’ analysis, the omission of sections and would have an impact on three major fronts in relation to the prevention of forward dealing and insider trading.

1. First, the prevention of insider trading norms shall cease to apply to private companies and public companies with unlisted securities. Quite a novel concept to India, provisions on ‘trading plans’ have been introduced whereby every insider is entitled to execute trades in pursuance of pre-determined trading plan in .

Insider Trading laws in India in comparison with the laws in US and UK