Business Ethics and Corporate Governance, Second Edition

CASE STUDY: ON INSIDER TRADING (HLL-BBUL MERGER)

(The case is based on reports in the print and electronic media. The case is meant for academic purpose only. The writer has no intention to sully the reputations of the corporate or the executives discussed.)

STATEMENT OF THE CASE

The Indian capital market has witnessed several price-rigging and insider trading activities both of which are considered unlawful by the Securities and Exchange Board of India (SEBI). Price rigging occurs when persons acting in concert with each other collude to increase or decrease artificially the price of a security. Insider trading refers to a situation when a person having unpublished price-sensitive information such as financial results, expansion plans, take-over ...