Firms to approach forensic experts for curbing instances of insider trading

India has not had a strong compliance mechanism around insider trading, historically

Recent regulatory action has prompted a host of top listed firms to approach forensic auditors to curb instances of insider trading within their organisations. 

The misuse of unpublished price sensitive information, or UPSI, came into the limelight after financial results of companies circulated through WhatsApp messages caught the attention of market regulator Securities and Exchange Board of India late last year. The regulator has gone to the extent of vetting social media to ascertain wrongdoing, and may soon come out with guidelines to help companies better tackle the menace. 

“The number of companies approaching us to track and mitigate insider