The pink newspapers this morning headlined that the Galleon Hedge Fund Founder and two Indian Americans among others were arrested for Insider Trading in USA…..Galleon has Investments in Edelweiss and Shriram too in India
Insider Trading is a pet issue with me and I discuss it vigorously at my training sessions when we are discussing Ethics
I even raised a debate that India and Insider Trading are inseparable….gave this as a question for a subjective essay type answer at the Final Exams of the passing out class at a leading Management Institute in Mumbai
Don’t confuse Insider Trading with genuine Research….but there is a thin line often between the two….because the conviction and confidence and credibility of your research is often based on sensitive ‘not available to the public’ information sourced from the company itself or those associated with it
But the sad fact remains that most in our stock markets,even those who you make icons and idolise,and view on stock channels regularly, practice the philosophy of ‘What’s Integrity to an Opportunity !’
Another sad fact is that many in this young generation don’t regard Insider Trading as a Crime !…the crime is if you get caught !….Facebook is currrently running an application where you answer questions put up…one is ‘What would you like to be ? Rich or Famous?’….and kids are opting for Rich !
One more sad reality is that in this nexus between promoters,Operators,FIIs,politicians,media and authorities it’s the public that get’s screwed…..Often under pressure,the exchanges and regulatory authorities themselves turn a blind eye to obvious instances of Insider Trading
And the tragedy is that no one in India has really been arrested for Insider Trading yet !….Maybe,once you become Big,you become ‘Honest’ ! Maybe but not necessarily !…there are big corporate groups who too have indulged and continue to do so in Insider Trading…End justifying the Means ! and Means justifying the End !
…..and then you go and build Temples and Educational Institutions ,trying to cleanse your feeling of wrong doing!
Wonder what will come out if someone makes an application under RTI for information on the status of insider trading complaints pending with SEBI ! ?
Several cases come to my mind immediately…some of which are featured in the Economic Times edition
Cheers !