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Insider Trading Allegations in the HDFC-HDFC Bank Merger and an Analysis of SEBI’s Recent Settlements
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Biraj Krishna Bhattacharya
Student in India
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Suraj Patra
Student in India
Abstract
This article examines the notion of insider trading in the context of the HDFC Ltd.-HDFC Bank merger in India. It discusses how the improper use of Unpublished Price Sensitive Information (UPSI) during corporate deals undermines market integrity and erodes investor confidence. The situation involving a Deloitte employee and his associates illustrates SEBI's regulatory framework and its enforcement actions under the SEBI Act and the 2015 Insider Trading Regulations. It outlines the investigative procedure, sanctions, and settlement approaches implemented by SEBI. The article also underscores the legal, ethical, and governance ramifications of insider trading and suggests enhancements such as advanced digital monitoring systems, employee education, and the incorporation of best global practices to boost transparency, to prevent future infringements, and fortify India's financial regulatory landscape.
Keywords
- Insider trading
- HDFC-HDFC Bank merger
- SEBI
Type
Article
Information
International Journal of Law Management and Humanities, Volume 8, Issue 2, Page 3815 - 3822
DOI: https://doij.org/10.10000/IJLMH.119481Creative Commons
This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.
Copyright
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