Corporate spygate: Sebi warns of action if stolen Govt info used in markets
21 Feb 2015 11:35 PM GMT
Cracking down on a suspected case of corporate espionage, Delhi police has arrested five persons, including two Ministry officials and some middlemen, in connection with the alleged leak of classified government documents to private sector companies for money. There have been reports that these leaked documents could also have been used for trading in the stock markets, although there are no official words on this.
When asked whether Sebi is looking into the matter, Sebi Chairman U K Sinha said he does not have any specific details on the issue, but if there was any truth in the allegations, the regulator will take
stern action. “I am hearing it for the first time from you people that the stolen information was allegedly used for trading in the market. We have an integrated surveillance department. If there is an iota of truth in that, my people would already be on working on that,” Sinha said.
Trades conducted on the basis of such confidential information, which would qualify as Unpublished Price Sensitive Information (UPSI), could amount to illegal insider trading as well as unfair and fraudulent activities.
He was speaking on the sidelines of an event organised by Sebi-promoted National Institute of Securities Management (NISM) at its upcoming campus at Patalganga near here.
When asked whether Sebi is looking into the matter, Sebi Chairman U K Sinha said he does not have any specific details on the issue, but if there was any truth in the allegations, the regulator will take
stern action. “I am hearing it for the first time from you people that the stolen information was allegedly used for trading in the market. We have an integrated surveillance department. If there is an iota of truth in that, my people would already be on working on that,” Sinha said.
Trades conducted on the basis of such confidential information, which would qualify as Unpublished Price Sensitive Information (UPSI), could amount to illegal insider trading as well as unfair and fraudulent activities.
He was speaking on the sidelines of an event organised by Sebi-promoted National Institute of Securities Management (NISM) at its upcoming campus at Patalganga near here.
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