What is insider trading
Trading of a share by an individual who has vital information which are not announced by the company to the general public. It is illegal to trade on the share when the sensitive information is non public.It is clearly stated by SEBI in insider trading regulation Act 1992.As this will affect other traders who are not aware of this.
The price sensitive information’s
* Buy back of the share.
* Intended to declare dividend.
* Expansion plan of the company
* New project got by the company
* Merging with other company or takeover of other company.
* Periodic financial results.
* Change in company policy or operation of the company etc..
Who all mighty be the insider traders
* Board of Directors.
* portfolio Manager
* Brokers, Sub Brokers.
* Investment Advisor.
* Relatives of the Company.
* Bankers Connected with the company.
* Share transfer Agent.
* Company employees like Manager, Assistant manager of Mutual fund .