Comparative Analysis of Investigation Imposed by SEBI on Price Rigging and Insider Trading

Author: Raj, P. Christopher

Abstract:
The insider trading regulations of the year 2019 entirely replaced the regulations of the year 2015 and created an entirely new legal framework. Price rigging is an illegal act of forming bubbles which can burst anytime. A group of person agreed to simultaneously buy and sell stocks in circulation in bulk quantity which aggressively inflates the price. The new regulations introduced various restrictions and exceptions to the practice of insider trading and rejuvenated the whole meaning of insider trading in our country. From the analysis of insider trading for the past 2 financial year (FY) 2018-19 and 2019-20, Security Exchange Board of India has caught 119 cases of insider trading, which is higher than the number of cases detected by Security Exchange Board of India in any of the previous years since its inception. The paper analyses the reasons for violation of insider trading and the quantum of penalty imposed for violation of Insider Trading Regulation norms. Also analyze the year wise investigative cases taken and completed by the SEBI on violation of insider trading, market manipulation and price rigging. The analysis and findings will helps to the future research on insider trading and helps to the strict implementation of new regulation.

Keywords:Price Rigging, Insider Trading, SEBI, UPSI.

DOI:

International Journal of Trade & Commerce (Vol: 10 Issue:1)