India to take 'all steps to curb insider trading'

Tuesday, 02 December 2003, 20:30 IST
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NEW DELHI: India will take steps to curb insider trading, Finance Minister Jaswant Singh asserted Monday. Responding to suggestions made on capital markets by Members of Parliament attached to the consultative committee of his ministry, he said: "All necessary steps would be taken to curb insider trading." According to an International Monetary Fund study, insider trading, which increases stock market volatility, is relatively high in India. Insider trading involves the trading of stocks by people who have access to information that is relevant to the value of the company and, hence, the price of the stock. In spite of the limited resources available to the regulator, "human resources and technological powers of Securities and Exchange Board of India (SEBI) would be augmented to keep pace with the expansion of its regulatory powers", an official statement quoted Singh as saying. Lauding the SEBI move on 100 percent dematerialised and online trading platform, the members also expressed satisfaction over continuing efforts at providing an effective regulatory framework at par with the best in the world. On the issue of corporate governance, Singh said this issue was not limited only to regulation but to a larger effort to put in place ethical practices. Responding to the suggestions of some members that the market must develop larger number of initial public offerings (IPOs), the finance minister agreed on the need to add substantial volume to the market. Singh voiced the view that quarterly disclosures, a global practice, were in the interest of investors. He pointed out that the finance ministry has commenced the practice of bringing out a quarterly review of the economy.
Source: IANS