Insider Trading : SEBI Uses Facebook Connectedness As An Evidence

In an insider trading case, Sebi has ordered impounding of unlawful gains of over Rs.2 crore from 15 individuals – based on their ‘connectedness’ over social media.

“Pirani Amyn Abdul Aziz is also found to be connected to Ameen Khwaja through mutual friends on Facebook. He was employed with Deloitte Tax Services India Pvt Ltd (a group company of Deloitte Touche Tohmatsu India Pvt Ltd, which had conducted the due diligence of PTL during the slump sale).” [SEBI/source]

These individuals were allegedly ‘connected entities’ and had traded in the shares of Palred Technologies Ltd (PTL) while possessing price-sensitive information and allegedly made unlawful gains in the process.

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