Case Study 15

Insider Trading: HLL–BBLIL Merger

(This case is based on print and electronic media and is meant for classroom discussion only. The author has no intention to tarnish the reputataion of either the corporates or the individuals involved).

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 Insider trading refers to a situation when a person having unpublished price-sensitive information such as financial results, expansion plans, take-over bids ...

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