NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout

    India
    Business
    World
    Politics
    Sports
    Technology
    Entertainment
    Auto
    Lifestyle
    Inspirational
    Career
    Bengaluru
    Delhi
    Mumbai

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
    Home / News / Business News / SEBI intensifies crackdown as insider trading probes increase 106% YoY
    Summarize
    Next Article
    SEBI intensifies crackdown as insider trading probes increase 106% YoY
    SEBI reports surge in insider trading investigations

    SEBI intensifies crackdown as insider trading probes increase 106% YoY

    By Mudit Dube
    Sep 02, 2024
    12:57 pm

    What's the story

    The Securities and Exchange Board of India (SEBI) has reported a significant increase in its investigations into insider trading and front running cases during FY24.

    According to the data, the number of probes related to insider trading rose from 85 in FY23 to 175 in FY24, translating to an increase of nearly 106% year-on-year.

    Similarly, inquiries into front running saw a more than three-fold increase from 24 to 83 within the same period.

    Technological upgrade

    SEBI's enhanced surveillance capabilities

    The surge in investigations coincides with SEBI's establishment of a lab equipped with multiple data sources, data analytics tools, and digital forensic tools.

    This setup was designed to bolster its surveillance and investigation capabilities.

    Some of these tools were developed in-house while others were procured and customized as per regulatory requirements.

    Data analysis

    Tools enhance SEBI's data analysis capabilities

    The tools have significantly improved SEBI's ability to analyze both structured and unstructured data from internal and public sources.

    They are used to identify connections among entities suspected of alleged securities market violations.

    These tools employ advanced technologies such as network visualization, graph database, AI/ML, etc., as stated in the annual report.

    Expert opinion

    Experts attribute probe surge to data and technology use

    Experts suggest that the rise in regulatory investigations is due to an increased focus on data and technology use.

    This allows SEBI to process large volumes of data quickly and reduce enforcement action time.

    Tomu Francis, Partner at Khaitan & Co, a leading law firm in the securities market arena, stated that "SEBI has over the last financial year, became more proactive in relation to market fraud investigations."

    Investigation process

    SEBI's tech use aids in market fraud investigations

    Francis further explained that insider trading investigations typically require companies to provide a list of connected persons and others involved in company processes leading up to a disclosure of price sensitive information.

    This information is analyzed by SEBI to determine potential leaks or access to UPSI (Unpublished Price Sensitive Information).

    Similarly, SEBI's use of technology has allowed it to sift through large amounts of trade related data between a larger number of parties in its price and volume manipulation investigations.

    Market impact

    Increased enforcement action to strengthen India's global market position

    Makarand Joshi, Founder of MMJC and Associates, a corporate compliance firm, believes that increased enforcement action from SEBI concerning cases related to insider trading and market manipulation will strengthen India's position in the global markets while attracting more investors.

    He stated that "Enforcement relating to insider trading and price manipulation is hygiene for the capital market."

    He further added that "Increase in enforcement around insider trading, price manipulation is to ensure fair play in the market."

    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    Latest
    Securities and Exchange Board of India

    Latest

    'Idly Kadai,' 'Kuberaa,' 'Kalam': Check Dhanush's blockbuster lineup Dhanush
    Mohammad Abbas clocks his 49th five-wicket haul in FC cricket County Cricket
    IPL 2025, DC beat PBKS: Presenting Player of the Day Delhi Capitals (DC)
    'Criminal Justice' S04: Cast, plot, and release details Pankaj Tripathi

    Securities and Exchange Board of India

    Zerodha MF expands offerings with launch of large-cap, mid-cap ETFs Finance
    SEBI's rule mandates top firms to address market rumors Business
    Bajaj Housing Finance finally files for ₹7,000 crore IPO Bajaj Finance
    SEBI won't freeze demat accounts, MF folios over nomination non-submission Business
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2025