INSIDER TRADING

Definition Insider trading is the buying , selling or dealing in

securities of a listed company by a director , member of management , employee of the company, or by any other person such as internal auditor , advisor , consultant , analyst , etc. who has knowledge of material inside information which is not available to general public.

• It is illegal.• Unfair to others investors who do not

have access to the information.• It is a breach of a fiduciary duty or other

relationship of trust and confidence.• It is a crime if made to get wrongful gain

or avoid losses.

Meaning of INSIDER TRADING

Case StudyCase StudyHLL HLL VSVS

SEBISEBI

Hindustan Unilever Limited VS

SEBI

ISSUES INVOLVED IN THE CASE :

Response of UNION FINANCE

MINISTRY

Measures taken by Company to stop INSIDER TRADING

• CORPORATE CODE• MONITORING• PHONE TAPPING• SUSPENSION or DISMISSAL• DENYING ACCESS• DESTRUCTION OF RECORDS

ACKNOWLEDGEMNT I would like to acknowledge all my group

members and my corporate governance teacher, Ms. Priya chaudhary , for their support and suggestions in making this presentation.

-MEMBERS Harjeet Singh Hardik Bajaj

Ishan pahwa Nikhil

The end.The end.