according to angrez ka aulaad, suhel seth—british made railways in india , so that we savage stinking coolies can travel i style--- not to car away india’s enormous wealth.
VADAKAYIL ON HOW EARLY BIRDS WHO MAKE HEFTY DONNASSANN TO MODI BLED BHARATMATA – POLL
rakesh jhunjhunwala, a partner at rare enterprises, who rose to amass a usd 6 billion fortune and earn the tag of india's biggest individual investor. rags to riches , a pauper who started off with 70 usd.. was he really king midas? or whas he a slimy fruaster, who avoided jail by donating to modi?
rakesh jhunjhunwala has a team of propagandists who cry from the rooftops “ share unlike names like harshad mehta and ketan parekh, whose rise in fortunes was tainted with scam links, the newest 'big bull' in the more-regulated market had lesser baggage on this front.”
rakesh jhunjhunwala was unabashed about wealth creation and strutted his connections flamboyantly, as he was sure that modi would keep him out of jail.. he had main stream media eating out of his palm, we know why and how !
in 2021, he and others settled an insider trading case related to aptech by agreeing to pay rs 37 crore under the consent route, where an individual can close a pending matter without admitting or denying the charges.
a rs 70-crore gain on an investment in zee enterprises in a short time, by investing in the stock days ahead of its board deciding on a merger with rival sony pictures networks in 2021, had also led to chatter around his conduct.
many of his views were closely aligned with that of the ruling nda as well, something which made his 2021 meeting with prime minister narendra modi less surprising.
his newest venture in the heavily-regulated airlines sector, akasa air, also had a smooth take off.
EVEN WIKIPEDIA STATES THAT RAKESH JHUNJHUNWALA WHO HIRES A FLEET OF THE MOST EXPENSIVE LAWYERS DID INSIDER TRADING.. PM MODI KNEW.. RBI GOVERNOR KNEW.. FINANCE MINISTER KNEW.. SEBI KNEW
at the inauguration of akasa air's flight operations at mumbai airport on august 7 2022 , jhunjunwala was sitting in a wheelchair and looked frail, . obviously he lacked rem sleep sprouting from a clear conscience
if a person constantly learns about events before others, this gives him a huge advantage. from the outside it is absolutely dishonest: he is always one step ahead of others and can make humongus money from it. balls rakesh jhunjhunwala was a man with the midas touch..he was a crook. how do you convert 5000 rupees to 48,000 crores ?
the use of insider information for transactions with financial instruments in all countries inluding india is prohibited
no nation tolerates insider abuse and market manipulation except india under modi’s rule.
Defnition of insider trading (according to merriam webster):
the illegal use of information available only to insiders in order to make a profit in financial trading
the securities and exchange board of india (sebi) has moved to settle an ‘insider trading’ case involving ace investor rakesh jhunjhunwala, wife rekha jhunjhunwala and eight others who were accused of unusual dealing in shares of aptech computers.
the parties will have to pay ₹37 crore to settle the case, which includes settlement charges, disgorgement of ill-gotten gains and interest.
jhunjhunwala and others had offered to settle the insider trading charges with sebi. it is one of sebi's largest settlements involving individual traders.
jhunjhunwala settled the case under sebi's consent route where an alleged wrongdoer can close investigations and adjudications into the matter with sebi without admitting or denying guilt and charges against them. CHOO CHWEET APAAAHHH.
jhunjhunwala has management control over aptech and is also on the board of the company. in september 2016, the share price of aptech hit a 10 per cent upper circuit as jhunjhunwala’s brother and sister picked up 2.5 lakh and 5 lakh shares respectively. both these trades combined were worth more than ₹100 crore then. there were trades executed by others as well. in just a few days, aptech announced its entry into the pre-school education segment.
shareholding of promoters led by the jhunjhunwala family has increased to around 48 per cent in aptech since the prominent investor first picked up a 10 per cent stake in the company in 2005. sebi found that there existed unpublished price sensitive information in aptech when the high-profile investors were dealing in the company shares.
apart from jhunjhunwala, others who were probed by sebi include ramesh damani, jhunjhunwala’s brother rajesh kumar, a chartered accountant, wife rekha, mother-in-law sushiladevi gupta, ushma sheth and madhu vadera jayakumar. ushma is the sister of utpal sheth, ceo, rare enterprises — jhunjhunwala’s flagship investment company.
trading in aptech by these investors between february and september 2016 was under sebi scanner
sebi had alleged that jhunjhunwala and others traded in aptech when in possession of unpublished price sensitive information (upsi).
upsi means any information, relating to a company or its securities, directly or indirectly, that is not generally available which upon becoming generally available, is likely to materially affect the price of the securities.
in september 2016, aptech had announced its foray into the preschool segment. as per the sebi order, this was an upsi between march 14, 2016 and september 7, 2016, the date of official announcement.
“price-sensitive information” means any information which relates, directly or indirectly, to a company and which if published is likely to materially affect the price of securities of the company.
“it is alleged that utpal seth and rakesh jhunjhunwala were in possession of the upsi and communicated the same to other applicants. on the basis of the upsi, rakesh jhunjhunwala, rekha jhunjhunwala, rajeshkumar jhunjhunwala, shushila devi gupta, sudha gupta and ushma seth sule are alleged to have traded in the scrip of aptech during the upsi period,” the sebi order said.
trading based on insider information is illegal because it is seen as unfair to other investors who do not have access to the information, as the investor with insider information could potentially make larger profits than a typical investor could make.
the definition of insider in one jurisdiction can be broad, and may cover not only insiders themselves but also any persons related to them, such as brokers, associates, and even family members. a person who becomes aware of non-public information and trades on that basis may be guilty of a crime.
dilip pendse served as the managing director of nishkalpa, a wholly-owned subsidiary of tata finance ltd. (tfl). as of march 31st, 2001 nishkalpa made a loss of 79.37 crores. this information was to be made public only a month later on april 30th. this information was price sensitive as it would lead to a fall in prices if leaked.
dilip pendse was in access to this information due to the role he played within the company. during this period dilip leaked this price-sensitive information to his wife. in between this period, 90,000 shares which were held by his wife and a company jointly run by his wife and her father in law in nishkalpa were sold in order to avoid losses.
dilip pendse, his wife, and the company jointly owned by his wife and her father-in-law were found guilty of insider trading. a penalty of rs 500,000 was imposed on each of them and dilip pendse was banned from capital markets for three years.
rakesh jhunjhunwala was probed by the sebi in january 2020 on account of alleged insider trading. these allegations were based on the trades made by him and his family in the it education firm aptech. aptech is the only firm in jhunjhunwala’s portfolio in which he owns managerial control.
sebi also questioned jhunjhunwalas wife, brother, and mother-in-law. this, however, is not the first time that rakesh jhunjhunwala has been embroiled in insider trading controversy.
in 2018 too he was questioned over suspicion of insider trading in the shares of the geometric. rakesh jhunjhunwala settled the case through a consent order mechanism.
in a consent order, sebi and the accused negotiate a settlement in order to avoid a long-drawn litigation process. here an alleged violation can be settled by the accused by paying sebi a fee without the admission or denial of guilt.
I PENNED A 33 PART POST ON SHELL COMPANIES AND MONEY LAUNDERING.. MODI KEPT QUIET ALLOWING HIS “DONATION PARTY” TO STEAL MORE AND SCOOT
people who do insider trading learn about the company's affairs before others, but the law prohibits them from using this information. this is cheating in an examination by getting the question paper a day in advance..
punishment should be long term jail.. but hey, in india if you donate a minuscule percentage of your profits to modi, you will not be jailed. you will be et off with a wee fine when you get caught..
imagine the situation: there is a fast-growing startup whose shares have increased tenfold over the past year. but then the financial report comes out, and it turns out that the company has gone bankrupt, nothing good awaits it. stocks, of course, fall.
the cfo manages to sell his securities at the peak and makes a big profit the day before the release of the report.
my left ball it is luck.. he read the document prior to its publication and knew how the financial results would affect the organization. he had an head start advantage over other current and potential shareholders.
insiders are people who have access to non-public information about securities and factors that affect their value. specifically, insiders include:--
representatives of the company issuing shares;
members of the board of directors;
representatives of state authorities;
what matters is who gets to it first and who analyzes it best. forecasts and comments are no longer confidential information.
insider dealing is the term given to the trading of stock or other securities, such as bonds or stock options, by people ‘on the inside’ who have access to private information about the company.
this inside information specifically relates to information that, if published, would have a significant effect on the price of shares in a company.
an investor with private information regarding stock is considered to have an unfair advantage over other investors who are not privy to this information.
insider dealing legislation means that anybody who trades based on non-public information is guilty of illegal activity. so, individuals should only trade using material information found in the public domain.
most insider trading is not detected. insider trading in the uk has been illegal since 1980. insider dealing is not a victimless crime and is deemed a foul fraud according to uk insider trading laws.
an individual is committing a criminal offence if:--
they use inside information which is price-sensitive in relation to shares;
they deal shares related to the inside information; or
the dealing takes place on a regulated market or via a broker.
insider dealing legislation states that perpetrators can be defended if:--
they were not expecting the sensitive information to glean a profit;
they were under the impression the information was widely known; or
they would have bought or sold the same shares even without access to the private information.
market abuse describes circumstances where unlawful behavior takes place in regards to financial markets.
the types of market abuse include market manipulation and insider dealing (or insider trading) as well as the following:--
improper disclosure – where protected information is disclosed to unauthorised persons, either directly or via loss of control of the inside information. this also includes circumstances where there is reasonable likelihood information has been disclosed, such as in the event of a burglary or electronic data breach.
misuse of information – when information that is available and accessible is handled and disclosed in a way that would influence a decision from an investor on whether to deal.
individuals who commit market abuse could end up being under market abuse and insider dealing investigation.
market manipulation occurs when someone intentionally discloses false or misleading information to influence the price of shares for their personal benefit. examples of market manipulation include, but are not limited to:---
churning – where a stockbroker attempts to increase activity in a client’s account by buying and selling orders at the same price with the intention to drive up the price, thereby deceptively attracting more investors.
ramping – spreading rumours or creating inaccurate activity to raise stock prices.
bear raiding – where a stockbroker tries to short sell a security and drive prices down, making a profit by allowing it to be re-bought at a lower price.
cornering – acquiring enough of a certain commodity to gain control and establish the price for it.
transactional manipulation – raising an investment price to an irregular level by trading in a way that creates a false impression on the true supply or demand for the investment.
device manipulation – any form of deception or contrivance regarding trading or placing orders which employs fictitious devices.
dissemination – providing false or misleading information regarding an investment, or acting as an issuer of investment and providing false information to manipulate the transaction.
distortion and misleading behaviour – giving a false impression surrounding the supply or the demand for an investment, including behaviour that leads to distorting the investment market.
although it is difficult to detect insider trading, insider dealing legislation and investigation can lead to prosecutions, resulting in a heavy fine and up to seven years of imprisonment.
if you or the company you work for are facing allegations of insider trading and market manipulation, a robust defence is vital from the outset as the consequences are potentially severe. you could face a lengthy prison sentence or an unlimited fine.
insider dealing ordinarily relates to allegations of trading while in possession of inside information, encouraging others to deal in such circumstances (‘tipping off’) and disclosure of inside information to unauthorised individuals.
again. market abuse and insider dealing are the related concepts by which individuals or companies use market sensitive inside information to manipulate the market.
while insider dealing is a crime under the criminal justice act 1933, market abuse comprises a range of behaviours and is more loosely defined under civil, rather than criminal, law.
no one can be imprisoned for breaching civil law, but anyone found liable of market abuse offences can face unlimited fines.
anyone can buy shares in quoted public companies. so you need a level playing field to make sure that everyone has the same access to the same level of information, so no one can take advantage of information affecting a share price, which isn't in the public domain.
market abuse is the kind of wider term that is used to describe insider dealing, as well as other unlawful behavior in financial markets. for example, it also includes market manipulation, making false or misleading statements about companies or creating misleading impressions in the market in the way that you trade in shares.
the purchase of shares is usually carried out in the hope that their value will increase. selling by employees of the company may mean nothing - in case they received a bonus in shares yesterday, and people get rid of them.
in the united states and several other jurisdictions, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade.
some economists, such as jew henry manne, have argued that insider trading should be allowed and could, in fact, benefit markets see the jews lve to sing all the way to the kosher bank.
the corporate insider, simply by accepting employment, has undertaken a legal obligation to the shareholders to put the shareholders' interests before their own, in matters related to the corporation. when insiders buy or sell based upon company-owned information, they are said to be violating their obligation to the shareholders.
liability for inside trading violations generally cannot be avoided by passing on the information in an "i scratch your back; you scratch mine" or quid pro quo arrangement if the person receiving the information knew or should have known that the information was material non-public information.
the insider who releases the non-public information must have done so for an improper purpose. in the case of a person who receives the insider information (called the "tippee"), the tippee must also have been aware that the insider released the information for an improper purpose
anyone who misappropriates material non-public information and trades on that information in any stock is guilty of insider trading. this can include elucidating material non-public information from an insider with the intention of trading on it, or passing it on to someone who will.
proving that someone has been responsible for a trade can be difficult because traders may try to hide behind nominees, offshore companies, and other proxies. the securities and exchange commission (sec) sec does not have criminal enforcement authority, but can refer serious matters to the u.s. attorney's office for further investigation and prosecution so that jews dnt get prosecuted .
members of the us congress are exempt from the laws that ban insider trading. because they generally do not have a confidential relationship with the source of the information they receive, however, they do not meet the usual definition of an "insider" braaaayyyyy stock sales and purchases by senators outperformed the market by 26 %per year
in may 2007, a bill entitled the stop trading on congressional knowledge act, or stock act was introduced that would hold congressional and federal employees liable for stock trades they made using information they gained through their jobs and also regulate analysts or political intelligence firms that research government activities.
the stock act was enacted on april 4, 2012. as of 2021, in the approximately nine month period up to september 2021, senate and house members disclosed 4,000 trades worth at least $315 million of stocks and bonds.
the advent of the internet has provided a forum for the commercialisation of trading on insider information. there are dark web sites were identified as marketplaces where such non-public information can be bought and sold using crypto currency. bitcoins are used to avoid currency restrictions and to impede tracking.
such sites also provide a place for soliciting for corporate informants, where non-public information may be used for purposes other than stock trading.
international organization of securities commissions. the international organization of securities commissions (iosco) is the international body that brings together the world's securities regulators and is recognized as the global standard setter for the securities sector.
investors should be protected from misleading, manipulative or fraudulent practices, including insider trading, front running or trading ahead of customers and the misuse of client assets.
iosco stands for international organization of securities commissions
the world bank and international monetary fund now use the iosco core principles in reviewing the financial health of different country's regulatory systems as part of these organization's financial sector assessment program, so laws against insider trading based on non-public information are now expected by the international community.
iosco principles are: protecting investors; ensuring that markets are fair, efficient and transparent; reducing systemic risk
the primary market is where securities are created, while the secondary market is where those securities are traded by investors. in the primary market, companies sell new stocks and bonds to the public for the first time, such as with an initial public offering (ipo).
the us, has much higher ceo salaries ( for jews ) than have japan or germany, where insider trading is less effectively restrained
in 2014, the european union (eu) adopted legislation (criminal sanctions for market abuse directive) that harmonised criminal sanctions for insider dealing. all eu member states agreed to introduce maximum prison sentences of at least four years for serious cases of market manipulation and insider dealing, and at least two years for improper disclosure of insider information.
rajat gupta, who had been managing partner of mckinsey & co. and a director at goldman sachs group inc. and procter & gamble co., was convicted by a federal jury in 2012 and sentence to two years in prison for leaking inside information to hedge fund manager raj rajaratnam who was sentenced to 11 years in prison.
the case was prosecuted by the office of united states attorney for the southern district of new york jew preet bharara. see, only jews can commit fraud and make money.
in 2021, puneet dikshit, a partner at mckinsey, pled guilty to trading on inside information that he had access to while advising goldman sachs on its acquisition of greensky, inc.dikshit was the third mckinsey partner to be convicted of insider trading in the southern district of new york.
insider trading in india is an offense according to sections 12a, 15g of the securities and exchange board of india act, 1992. insider trading is when one with access to non-public, price-sensitive information about the securities of the company subscribes, buys, sells, or deals, or agrees to do so or counsels another to do so as principal or agent. price-sensitive information is information that materially affects the value of the securities. the penalty for insider trading is imprisonment, which may extend to five years, and a minimum of five lakh rupees (500,000) to 25 crore rupees (250 million) or three times the profit made, whichever is higher.
the wall street journal, in a 2014 article entitled "why it’s hard to catch india’s insider trading", said that despite a widespread belief that insider trading takes place on a regular basis in india, there were few examples of insider traders being prosecuted in india.. if you are an indian jew and you donate to modi, you will be unharmed.. the system is rigged
in india insider trading is deeply rooted and especially rampant because regulators don't have the tools to address it. in the few cases where prosecution has taken place, cases have sometimes taken more than a decade to reach trial, and punishments have been light; and despite sebi by law having the ability to demand penalties of up to $4 million, the few fines that were levied for insider trading have usually been under $200,000
there’s a growing bipartisan push to prohibit members of us congress from buying or selling stocks. the shift follows news reports that several jewish senators sold stocks shortly after receiving coronavirus briefings in early 2020 and that at least 57 lawmakers have failed to disclose financial transactions since 2012 as required by law.
insider trading is whenever someone uses market-moving nonpublic information in the act of buying or selling a financial asset.
for example, say you work as an executive at a company that plans to make an acquisition. if it’s not public, that would count as inside information. it becomes a crime if you either tell a friend about it – and that person then buys or sells a financial asset using that information – or if you make a trade yourself.
punishment, if you’re convicted for insider trading, can range from a few months to over a decade behind bars. in india , if you are a jew, you can donate mota laal to modi and you are safe.
the issue was dramatized in oliver stone’s 1987 classic movie “wall street,” in which ruthless financier gordon gekko makes millions of dollars by trading on inside information on several companies obtained from his protege, bud fox.
“the most valuable commodity i know of is information,” declares gekko, who by the end of the film is convicted of insider trading and sent to jail.
the monthly consumer price index figures have a huge impact on financial markets at the moment because of concerns about inflation and how it will affect the pace of federal reserve interest rate hikes.
that data is collected and then closely guarded, but a small number of people have access to it before it’s officially released, making the information extremely valuable if any of them wanted to profit off it.
some traders may have advance knowledge of information in economic announcements.
in india insider trading is common and profitable, yet notoriously hard to prove and prevent, especially if you donate to modi.
in 2016, when billionaire jew steven cohen and his now-defunct sac capital advisors hedge fund entered into a us$135 million settlement over insider-trading allegations. the hedge fund also paid a fine of $1.8 billion in 2014 over similar charges.
in 2020, former u.s. rep. jew chris collins was sentenced to 26 months in prison for passing on a confidential tip to his son and then lying about it to the fbi.
insider trading is not a victimless crime. by throwing sand in the gears of financial markets, people trading on inside information benefit at the expense of others.
a key characteristic of well-functioning financial markets is high liquidity, which means it is easy to make large trades at low transaction costs.
insider trading adversely affects market liquidity and makes transaction costs higher, reducing investor returns. and since a lot of people have a stake in financial markets – a huge percentage of families own stocks either directly or indirectly – this behavior hurts people..
insider trading makes it more expensive for companies to issue stocks and bonds. if investors think that insiders might be trading bonds of a company, they will demand a higher return on the bonds to compensate for their disadvantage – increasing the cost to the company. as a result, the company has less money to hire more workers or invest in a new factory.
there are broader impacts of insider trading. it undermines public confidence in financial markets and feeds the common view that they odds are stacked in favor of the elite and against everyone else.
since inside traders profit from privileged access to information rather than work, this makes people believe that the system is rigged.
insider trading happens when someone makes a trade based on "material" information that's not available to the public. in market terms, material information is any detail that could affect a company's stock price. in legal terms, it's any fact that, if known, would have an effect on the outcome of a choice to buy or sell.
having these facts gives the investor an edge when it comes to buying or selling shares.
you can get into trouble if you buy or sell shares based on information that no one else has access to and you have a fiduciary duty to someone else.
a fiduciary duty exists when one person is supposed to act in another's best interest. fiduciaries have duties of care, loyalty, good faith, confidentiality, prudence, and disclosure.
insider information lets a person profit or avoid a loss. it's an abuse of that person's knowledge or power in either case.
investors who are "in the know" have a chance to make more money. others who don't have access to these secret tips don't have the same opportunity.
any person who tips off someone else with insider information can also be charged and found guilty.
insider trading can happen where no fiduciary duty is present. in these cases, the crime often comes to light because another crime has been committed. one such type of crime might be corporate espionage.
an organized crime ring might use certain financial or legal institutions to gain access to private information. the people involved might be found guilty of insider trading if they're found out. they may also be convicted on other charges for related crimes.
a us supreme court ruling once called it a “perk” of being an executive ( read as jewish )
insider trading was front page news again in 2011 when hedge fund manager raj rajaratnam was sentenced to a record 11 years in prison. he had traded stocks based on the receipt of confidential information. be warned, only jews can make money by cheating—this is their kosher turf
here’s the u.s. securities and exchange commission’s insider trading definition…
buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security … violations may also include ‘tipping’ such information, securities trading by the person ‘tipped,’ and securities trading by those who misappropriate such information
. a university study found that u.s. senators’ portfolios outperformed the market by about 31 %.
u.s. households underperform the market by 3%.
the first insider trading laws came out in response to the us stock market crash of 1929.
now, us congress has the securities and exchange commission (sec) to provide oversight.
individuals can face up to 20 years in prison and/or a fine of $5 million for each “willful violation.” corporations can face fines of up to $25 million.
bigwigs with valuable information tend to keep that information close to the vest. they move in small kosher circles of power.
with small potatoes like you and me, tracking what we do is easy. our brokerage accounts are in our own names.
not so with the big guys. their stuff is often hiding in offshore accounts and other proxy entities.
also, ceos have full discretion over when to release company information and how much. this means that insider trading news can appear less direct.
for example, a ceo could release confusing or conflicting press releases close together. instead of dropping negative news and tanking the company’s stock.
according to the sec, illegal insider trading “refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, on the basis of material, nonpublic information about the security. insider trading violations may also include ‘tipping’ such information and securities trading by those who misappropriate such information.”
insiders can’t trade when they have an advantage over the public—this aint no rocket science.
bernard ebbers insider trading case--
this guy is a cautionary tale for anyone who doesn’t respect the risks of a margin call.
bernard ebbers was the ceo of a large telecommunications company called worldcom. he had hundreds of millions of dollars in company stock. and decided to borrow against it to fund other ventures.
unfortunately, worldcom’s stock tanked in 2000. ebbers was stuck with a margin call of over $400 million dollars. he then produced fraudulent accounting records to prop up worldcom’s valuation.
in 2005, an internal auditing department tipped off the sec, and it was game over. they convicted him of conspiracy, securities fraud, and false regulatory filings.
AFTER SERVING 13 YEARS OF A 25-YEAR PRISON SENTENCE, A JUDGE LET HIM OUT FOR HEALTH REASONS. HE DIED EARLY THE FOLLOWING YEAR.
insider trading has been around for almost as long as the stock market itself. it took us congress time to realize the dangerous impact it could have on the integrity of the markets.
since the great depression, laws and insider trading penalties have increased over time. the last bill signed into law was the stop trading on congressional knowledge act (stock act) in 2012.
material nonpublic information (mnpi)is confidential, proprietary information about a company that will affect its stock price either positively or negatively when the information is made public.
material non-public information or mnpi is information not generally disseminated to the public or available to investors generally, which a reasonable investor would likely consider important in making an investment decision such as to buy, sell, or hold securities.
material information is any information that could substantially impact an investor's decision to buy or sell the security. non-public information is information that is not legally available to the public.
material information means any information relating to the business and affairs of the company that results in, or would reasonably be expected to result in, a significant change in the market price or value of any of the listed securities of the company.
to avoid hefty fines and actions, firms must have comprehensive and actionable policies and procedures around the management of mnpi and insider lists to minimize risk.
material non-public information is manipulative and can gain an unfair advantage in the marketplace. the information is“material” if its disclosure would affect security.
‘moody’s’ explains on its website how insider trading laws and regulations the world over do not allow buying or selling a company’s securities while in possession of material non-public information about that company.
disclosing such material non-public information is in itself a violation of these laws. this is especially true of the party you have disclosed this uses this information to make a financial decision regarding the company’s securities. even if you personally do not gain or lose, you become a party to this violation.
to prevent the passing of sensitive information outside the organization, companies have now started employing strict and complex firewalls that block information with specific words in emails and attachments.
it requires special permission for sending the documents and information to external id. traders and sales personnel are required to fulfill certain criteria to ensure that delicate information is not exposed. with secure attachments and the external drives for the purpose of emailing and posting procedures, their client communications are also recorded. employees get periodic training on these policies and practices for self-updating.
insider tipping is illegal. it means sharing mnpi with others who may then trade on that illegally obtained information.
everyone knows that owning company stock carries financial risks. however, it comes as a surprise to many employees that trading company stock can actually get you into serious legal trouble, including criminal liability. two major ways in which you can, even accidentally, break the securities laws are called insider trading and insider tipping.
insider tipping is illegal. it means sharing mnpi with others.
the laws against insider trading and tipping apply to everybody, not just executives and other company insiders. you can get into serious trouble even accidentally, without any intent to violate the laws.
the insider-trading laws apply to mnpi not only about a company you work for but also about any company you may know through a professional or personal relationship, e.g. through a family member who works for that company, or through a vendor, supplier, or client of your company.
the sec now wields a formidable array of digital technology to spot, track, and examine links between people involved or connected with suspicious stock-trading activities. as explained in a 2019 speech by former sec chair jay clayton, the sec uses sophisticated data analytics, including pattern recognition, to detect suspicious stock trading.
for example, he noted, the sec's atlas tool lets the agency's staff harness multiple streams of data, including blue sheets, pricing, and public announcements. the tool is routinely used to look for insider trading before a major equity event, detect serial insider trading, and research historical securities prices for litigation. in 2018, these data analytics led to sec charges against an investment banker who allegedly misused access to confidential information.
the sec is now routinely scrutinizing hedge funds for evidence of insider trading.
even if you merely pass on mnpi and do not trade for yourself, you can still be accused of insider tipping.
in 2018, the sec formally expanded its definition of mnpi to include knowledge about cybersecurity risks and incidents, including vulnerabilities and breaches the sec enforcement action and justice department criminal action against a former equifax cio for insider trading shows that they view knowledge of a massive cyber-intrusion and data breach as material information.
let’s look at what the sec has to say about this. the commission says the definition of who is an insider “can include officers, directors, major stockholders and employees of an entity whose securities are publicly traded.
insider trading seems simple enough to understand, and yet it’s one of the more misunderstood terms in the financial world. it’s not as abstract as “you know when you see it” but whether something constitutes insider trading really comes down to access and intent.
insider trading is illegal when the material information is still non-public, and this sort of insider trading comes with harsh consequences.
the term "insider trading" generally has a negative connotation. legal insider trading happens in the stock market on a weekly basis. the sec requires transactions to be submitted electronically in a timely manner. transactions are submitted electronically to the sec and also must be disclosed on the company’s website.
insider trading can be either legal or illegal depending on whether it conforms to sec rules or not.
the stock market is able to work in an efficient way when all the investors have the same information, this creates a level playing field. here, the investors are rewarded for their analysis and expertise. insider trading throws this level playing field out the window.
insider trading refers to trades made based on material price-sensitive non-public information about the company.
insider trading in india is governed by the sebi act of 1992. any individual who is proved guilty of insider trading can be imprisoned for a maximum of 5 years and fined between rs. 5 lakh to rs. 25 crores or 3 times of the profit made whichever is higher. the rules governing such trades and the degree of enforcement vary significantly from country to country.
the timing when the person in question makes the trade is also important. if the information in question is still non-public when the buy/sell of shares takes place it constitutes insider trading.
acting on the information does not only constitute trading the share of the company in the stock market. even further passing on the information is illegal. in india, close relatives of company officials are also considered insiders.
it isn’t always necessary for you to be a member of the organization to be a part of insider trading.
a company planning to undergo a merger with another company will involve many third parties like bankers, lawyers, and other professionals who offer their services to the company. if they act on the information they receive they can be prosecuted for insider trading.
the implementation of various decisions taken by the company requires prior approval from the government. hence government officials too can be incriminated for acting on the confidential decisions they receive while executing their duties.
insider trading, however, is not limited to white-collar relations. members of an organization or employees may share the information with friends or family or acquaintances. if this information that is yet to be made public is acted on they will also be prosecuted under insider trading.
jew milton friedman who received the nobel memorial price in economic sciences in 1976 said, “ you want more insider trading, not less. you want to give the people most likely to have knowledge about deficiencies of the company an incentive to make the public aware of that.” this is the way jews think—tee heeee
insider trading shakes people’s faith in the stock market.
laws specify that an offender of the illegal insider trading may end up paying a penalty of up to $ 5 million. in addition, the accused could also be penalized with a maximum prison sentence of 20 years if found guilty of a criminal offence.
the nature of the stock market is basically about buying into the ownership of a company at a fair or good enough price, and selling at a price that favors you.
. the insider trading information to trade stock can be likened to when a punter is given a tip on the likely result of a fixed match.
the fact that hedge funds managers are privy to insider’s information of most companies listed in the stock exchange makes it easier for them to leak such information to the stock market.
the sec uses sophisticated tools to detect illegal insider trading, especially around the time of important events such as earnings reports and key corporate developments.
in the us , the maximum sentence for an insider trading violation is 20 years in a federal penitentiary. the maximum criminal fine for individuals is $5,000,000, and the maximum fine for “non-natural” persons (such as an entity whose securities are publicly traded) is $25,000,000
algorithmic trading is a method of trading where computers make decisions on what to buy and sell in the financial markets.
the aim of algorithmic trading is to either make profits by buying lower and selling higher, or to reduce trading costs by buying or selling big blocks of financial products in an efficient way.
the computer decides what and how much to buy and sell based on certain rules. however, humans design these rules.
a strategy to take advantage of the market inefficiency is discovered. this means to decide when to buy and sell, how much to buy and sell, and how to close the trade.
one version of algorithmic trading is high frequency trading (hft). in hft, computing and communication speed are vital. for instance, we need to fire a trade faster than a rival trading firm.
low frequency trading does not require us to be fast. for instance, we can take our time to analyze millions of tweets before firing a trade.
in manual trading, humans know when and how much to buy and sell. this decision-making process usually involves qualitative work; such as reading companies’ annual reports.
whenever a company posts a lot more job openings than before, a software will buy that stock.
whenever a stock falls much more than the rest, the software will buy that stock and short the rest of the 99 stocks.
whenever a cryptocurrency is priced differently on one exchange compared to the other, the code will buy the under-priced product and short the overpriced one.
algo trading, short for algorithm trading, is a machine-driven trading service that can either suggest trades based on the data that is fed into the system, or automatically execute orders on your behalf.
you can feed the conditions into an algorithm and tell it what to do when those conditions are met. an order will be placed automatically based on your inputs, with the machine doing your job for you.
the only thing that an algo can do is to follow your instructions. it cannot guarantee any amount of profit, regardless of the market situation.
algo trading is widely used across developed markets, and was introduced in india in 2008. in the us, half the traders by 2012 were being done via algos. in the foreign exchange markets, algos account for nearly 80% of the total trading volumes.
algo trading is allowed by sebi with certain conditions related to adequacy of risk management systems and annual audits of brokers’ systems by certified information system auditors (cisa).
algo trading seems helpful since it takes away the tedious process of manually checking if your conditions are met, and then placing the order based on that.
it is also worth noting that whatever humans can do, machines can do faster and more accurately. for instance, you might take a few seconds to perform an arithmetic calculation, but a calculator will do it instantaneously.
one of sebi’s biggest concerns is the rise in algo trading platforms that either promise or suggest that traders can make money if they use their platforms.
these unregulated algo trading platforms can oversell or missell their algorithms to unsuspecting retail investors, who could end up losing their life’s savings. while the risk is not as huge while trading in individual stocks, futures and options carry risk that is several magnitudes higher.
algorithmic trading is a method of executing orders using automated pre-programmed trading instructions accounting for variables such as time, price, and volume. this type of trading attempts to leverage the speed and computational resources of computers relative to human traders.
in the twenty-first century, algorithmic trading has been gaining traction with both retail and institutional traders. it is widely used by investment banks, pension funds, mutual funds, and hedge funds that may need to spread out the execution of a larger order or perform trades too fast for human traders to react to. a study in 2019 showed that around 93% of trading in the forex market was performed by trading algorithms rather than humans.
the term algorithmic trading is often used synonymously with automated trading system. these encompass a variety of trading strategies, some of which are based on formulas and results from mathematical finance, and often rely on specialized software
examples of strategies used in algorithmic trading include systematic trading, market making, inter-market spreading, arbitrage, or pure speculation, such as trend following. many fall into the category of high-frequency trading (hft), which is characterized by high turnover and high order-to-trade ratios.
hft strategies utilize computers that make elaborate decisions to initiate orders based on information that is received electronically, before human traders are capable of processing the information they observe. algorithmic trading and hft have resulted in a dramatic change of the market microstructure and in the complexity and uncertainty of the market macrodynamic,particularly in the way liquidity is provided
algorithmic trading and hft have been the subject of much public debate since the u.s. securities and exchange commission and the commodity futures trading commission said in reports that an algorithmic trade entered by a mutual fund company triggered a wave of selling that led to the 2010 flash crash.
an automated trading system (ats), a subset of algorithmic trading, uses a computer program to create buy and sell orders and automatically submits the orders to a market center or exchange. the computer program will automatically generate orders based on predefined set of rules using a trading strategy which is based on technical analysis, advanced statistical and mathematical computations or input from other electronic sources.
automated trading systems and electronic trading platforms can execute repetitive tasks at speeds orders of magnitude greater than any human equivalent. traditional risk controls and safeguards that relied on human judgment are not appropriate for automated trading and this has caused issues such as the 2010 flash crash. new controls such as trading curbs or 'circuit breakers' have been put in place in some electronic markets to deal with automated trading systems.
automated trading systems allow users to simultaneously trade in multiple accounts which allows them to diversify their portfolio. diversifying the portfolio allows the users to minimize their risks by spreading the risk over various instruments.
even though the underlying algorithm is capable of performing well in the live market, an internet connection malfunction could lead to a failure.
although the computer is processing the orders, it still needs to be monitored because it is susceptible to technology failures
an algorithm that performs very well on backtesting could end up performing very poorly in the live market. good performance on backtesting could lead to overly optimistic expectations from the traders which could lead to big failures.
automated trading system can be based on a predefined set of rules which determine when to enter an order, when to exit a position, and how much money to invest in each trading product.
backtesting of a trading system involves programmers running the program by using historical market data in order to determine whether the underlying algorithm can produce the expected results.
although many hft strategies are legitimate, some are not and may be used for manipulative trading. a strategy would be illegitimate or even illegal if it causes deliberate disruption in the market or tries to manipulate it.
such strategies include "momentum ignition strategies": spoofing and layering where a market participant places a non-bona fide order on one side of the market (typically, but not always, above the offer or below the bid) in an attempt to bait other market participants to react to the non-bona fide order and then trade with another order on the other side of the market. they are also referred to as predatory/abusive strategies.
‘exploratory trading” or momentum ignition has nothing to do with the fundamentals of the stock market. it is nothing more than a high-tech version of scalping.
momentum ignition is when “an instigator takes a pre-position; instigates other market participants to trade aggressively in response, causing a price move; then trades out.”
some hft companies uses momentum ignition to spark the handle, other algorithmic trading companies are in the hunt for such “ignition”, to handle behind, just as vultures waiting patiently the entire intraday.
dirtyalgo is a small sweatshop algo trading company in bangladesh who has at its services 10 people, 3 work on infrastructure and the rest are traders that know how to program in c++. they have invested quite awful time and money developing algorithms, unfortunately they are not that profitable.
then one trader, lets call him mustafa, noticed a strange pattern occuring consintently in the stock market, especially after the crash in 2008. prices will go up as a burst and in a matter of seconds they will go down, maybe the volume will increase during that period, lasting a minute but after that, the price of the stock will stabilize.
mustafa kept on studying these bursts and noticed that he could create a strategy that can benefit from this sudden and unexplainable changes in the price. he noticed how the volume increases , meanwhile the history volatility of the stock hasn’t been that extreme to explain why such as stable price suddenly changes, since there was no external reason for it to happen.
mustafa developed his algorithm and started testing his theory. he kept adapting it until he was able to ‘join the hunt’ properly, so he will sell short and buy low at the right moment. he began with small limit and kept on increasing it, making his total pnl one day usd 120,000! now, you know how he did it?
LET US DANCE TO MUSTAFA.
momentum ignition does not occur in the blink of an eye, but its perpetrators benefit from an ultra-fast reaction time. generally, the instigator takes a pre-position; instigates other market participants to trade aggressively in response, causing a price move; then trades out. identify momentum ignition with a combination of factors, targeting volume spikes and outsized price moves
algo means algorithm, and algo trading refers to a process in which stock trading is done using algorithm-based software. algo trading software automates all your trading activities as per some pre-programmed trading instructions. these instructions are based on certain factors like price, time, volume, or any other mathematical model.
traders can set their own algorithms that can buy and sell orders when the desired conditions are met. with automated trading software, traders don’t need to continuously monitor live prices or graphs to place their orders manually. algorithm trading can automatically do it for you when it identifies the right trading opportunity. it helps traders to increase their trading speed and accuracy, and never miss an opportunity to make a good deal.
algotraders is one of the best open source algo trading platforms in india with immense popularity. its latest version uses an esper engine that helps it to operate at a very high speed. it can process 5 lakh events every second.
robotrader by tycoon pacific is a automated trading software in india comes with a multi-user plug-in feature that allows multiple traders to use the same tool. further, traders can set a maximum risk percentage which will tell the algo trading software when to stop trading. in addition to this, this software also enables traders to customize their strategies by combining certain parameters, with zero coding.
tradetron is a fully automated trading software that makes algo trading easy for everyone without writing a single code. it is backed by many features that allow you to run fundamental analysis, technical analysis, back testing, social trading, and more. in addition to this, tradetron tech allows traders to try different trading strategies in the indian stock market.
omnesys nest, is a algo trading platform in india offers premium tools to enable multiple trading facilities. traders can run trading strategies such as order slicing, basket trading, 2i and 3i spreads, and more. with this automated trading software india, you can trade in exchanges like cdsl, nse, and mcx.
algonomics is a free algo trading software that helps traders to prevent losses while trading with its diverse trading strategies. users can define their own strategies or use the pre-defined strategies offered by the software. in addition to this, traders can also use multiple strategies while trading which can be paused, stopped, or changed as per the user’s convenience.
etoro automated trading software allows users to put their complete portfolio on autopilot with the copy trading feature. you can open an account with a minimum investment of $10, but you can begin with copy trading with $200 per trader. you can follow some expert traders and mimic their trading style, and the algo trading platform without paying any charges to the platform.
although some algo trading software allows you to trade with absolutely zero coding but the programming knowledge will give you a competitive edge. you can start learning programming languages such as java, c++, etc.,
zerodha streak, algotraders, odin, etc., are some of the algo trading software in india for nse.
algo trading allows traders to set their own algorithms to buy and sell orders in their desired circumstances. algo trading automatically places orders for you, so you don’t need to monitor live prices of stocks manually. this ensures that you don’t miss any good trading opportunity.
algorithmic trading which is also known as black-box trading, simply means that the systems are trained and provided with a certain set of instructions to perform trade with limited human interventions. it is theoretically conceivable for the trade to produce profits at a rate and frequency that are incomprehensible to a human trader.
the use of algorithms to implement trades without getting into the complexity of predictive analysis allows traders to profit from the appearance of desirable trends.
the art of swing trading involves spotting these swing highs and lows and then entering a position. the objective is to spot a larger trend and capitalize on it. the interpretation of each swing’s length and duration is essential for successful swing trading because they establish crucial support levels.
swing traders should pay attention to markets experiencing high levels of supply or demand. while monitoring trades, traders also keep an eye on whether momentum is increasing or decreasing within each swing.
successful traders frequently keep track of their gains and losses, which enables them to trade consistently and systematically.
originally, hedge funds were designed to “hedge” or protect the assets of extremely wealthy individuals, pension funds, and other high-net-worth institutions.
over time, however, as the industry became more competitive, hedge fund managers increasingly gravitated away from investing and took up trading, eventually even trading in and out of stocks over fractions of a second.
when you hedge your investments, you make a counterbalancing investment to offset the risk in another investment. hedging makes the most sense if you have risky, short-term investments in your portfolio. long-term investments should be able to ride out short-term market fluctuations. hedging is an intermediate-to-advanced technique
hedge funds make money as part of a fee structure paid by fund investors based on assets under management (aum). funds typically receive a flat fee plus a percentage of positive returns that exceed some benchmark or hurdle rate.
hedge funds got their name from investors in funds holding both long and short stocks, to make sure they made money despite market fluctuations (called "hedging").
bridgewater is the world's largest hedge fund, with about $150 billion in capital. since its founding in 1975, a hedge fund is an investment vehicle that caters to high-net-worth individuals, institutional investors, and other accredited investors. the term “hedge” is used because these funds historically focused on hedging risk by simultaneously buying and shorting assets in a long-short equity strategy.
one of the most infamous hedge fund scandals, former nasdaq chairman bernie madoff established bernard l madoff investment securities, llc and ran a sophisticated ponzi scheme through the hedge fund. madoff in december 2008 admitted that his wealth management business was a multi-billion dollar ponzi scheme.
hedge fund managers become rich by making money on the profits of their assets. they charge a 2% performance fee and cut the generated gains, which amounts to about 20%. due to the above, they only allow wealthy and affluent individuals to invest in hedge funds.
the term “hedge fund” describes a private investment partnership that is minimally regulated and may invest in many different types of investments, including illiquid and speculative investments. investors invest in the hedge fund, and the hedge fund then puts investor cash into the investments it chooses. hedge fund managers generally receive a percentage of the returns
hedge funds are not required to register with the sec. as such, they are not subject to the same mandatory reporting rules as other investment funds. this lack of oversight, coupled with the significant first investments that investors are typically required to make in order to participate in a hedge fund, opens the door for fund managers to easily take advantage of investors
unscrupulous jewish financial professionals may choose to make misleading statements or fail to fully explain the hedge fund’s risks to their clients—instead choosing to line their own pockets at the investor’s expense.
hedge fund promoters often entice potential investors with optimistic claims of fast, sizeable returns.
hedge funds invest in a wide variety of different assets. beyond traditional stocks and bonds, hedge funds can also invest in real estate, currencies, complex derivatives, and much more.
hedge funds are incredibly complicated ( deliberate so that jews can make moolah ) and they can take on an enormous amount of risk. sometimes, it can be difficult for investors to know what exactly their money is invested in at any given money.
hedge funds can be a conduit for investment fraud schemes. hedge funds are only open to so-called ‘accredited investors’. to be eligible to invest in a hedge fund, an investor must meet certain minimum standards. most notably, they must have a sufficient net worth.
under current law, an investor’s net worth must be in excess of $1 million, excluding the value of their primary residence. otherwise, an investor is generally not eligible to put money into a hedge fund. as the securities and exchange commission (sec) deems accredited investors capable of assessing and taking on immense risk, hedge funds are very lightly regulated to make it easy for jewish crooks
innocent investors have been burned because hedge fund managers failed to properly disclose the nature and risks of the underlying investments.
fund managers have misled investors about the performance of the hedge fund, falsely claiming that the fund has been doing fine and covering up major losses.
there are cases in which the hedge fund is an outright investment scam, designed as a cover for a ponzi scheme or another type of blatant theft or intentional misrepresentation.
hedge fund corruption is humongous .. the industry is overrun with unethical and illegal activity. jews sing all the way to the kosher bank
jew friedman, laureate of the nobel memorial prize in economics, said: "you want more insider trading, not less. you want to give the people most likely to have knowledge about deficiencies of the company an incentive to make the public aware of that."
TO BE CONTINUED
CAPT AJIT VADAKAYIL