It says possible “Insider dealing” cases comprised the largest number of illegal cases accounting for 33% of the 30 cases detected by SEC during the last year.
SEC explained the nature of the possible insider dealing as, “Trading in the shares of the listed whilst in the possession of unpublished price sensitive information in respect of the securities of the said company”.
Meanwhile 27% of the detections have come under the “market manipulations” category which SEC describes as the “creation of a false or misleading appearance in respect of the trading or the price of any securities listed on a stock market”.
The regulator has also identified 7% of the cases in relation to “Front Running” which it describes as “Trading in securities of a Company ahead of a significant purchase or sale of securities of such company, for a client, with the intent to profit by trading in the said securities thereafter”.
The remaining 33% of cases have been in relation to takeovers and mergers, rumor verifications and dealing by directors of Default Board Companies.
SEC says during the year 2010 a total of 20 investigations were carried out while two investigations were suspended owing to litigation issues.
In addition, cases against three individuals have been conducted and were compounded upon payment of Rs. 1 million by one individual and Rs. 3.3 million by each of the other two individuals to the compensation fund.