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Companies must have policy to protect data against insider trading: KPMG Report

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New Delhi, March 9: As the investors’ confidence is on a rise in India, the companies must have a policy to manage unpublished price sensitive information (UPSI) to prevent insider trading, says a report.

“Companies must have a policy to manage UPSI and the risks emanating from its leakage. These policies should provide guidance in the form of procedures (to implement the policy) and should be audited on a periodic basis,” said Suveer Khanna, Partner-Forensic Services at KPMG in India.

Industry chamber ASSOCHAM and KPMG in India on Friday launched a paper titled “The ‘Insider’ threat — Safeguarding UPSI”.

“Due to the dynamic business scenario, the information flow of confidential data has become very fluid and in such an environment, data is frequently in transit. Companies should look at implementing good practices such as investing in the right technology to avoid data leakage,” said Sudesh Anand Shetty, Partner-Forensic Services, KPMG in India.

The report also suggested a few things that would help the companies keep its reputation intact by guarding against insider trading. It recommended investments in right technology, right processes and in people.

The equities market regulator — Securities and Exchange Board of India — has framed regulations such as SEBI Prohibition of Insider Trading Regulations (PIT), 2015, to combat the menace of trading in securities with the unfair advantage of having access to UPSI which when published could impact the price of securities in the market, it said.

The paper said Red flags identified, if any, from audits should be documented and steps must be taken to mitigate the risks.

A company has multiple applications installed with various data sources generating large and varied datasets. UPSI typically would consist of information which is confidential or is not public knowledge, which when disclosed to the public is likely to materially impact the performance of the company’s stocks, it said.

This report comes only a couple of days after the SEBI had directed Tata Motors to conduct an inquiry into the leakage of unpublished price sensitive information relating to financials prior to their official announcement in the stock exchanges.

The SEBI order comes after it probed the leakage of Tata Motors financial numbers for the quarter ended December 31, 2015 on Whatsapp groups ahead of its filing with the stock exchanges.

The report said ‘insider trading’ is an undesirable practice that breaches the fundamental principle of ‘information symmetry’ and tends to distort the market by creating unfair advantage in favour of those who profit on the basis of UPSI.

The report said securing UPSI and ensuring that the data does not fall in wrong hands is critical for a company to ensure continued investor confidence, preserving its own reputation and goodwill in the market.

IANS

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Post-2014, India ‘richer’ by 601 new billionaires, Mukesh Ambani on top

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mukesh ambani

Mumbai, Sep 25 : India added a whopping 601 new billionaires since 2014, with Reliance Industries Ltd Chairman Mukesh Ambani topping the ‘Barclays Hurun India Rich List-2018’ for the seventh consecutive year with an estimated wealth of Rs 371,000 crore.

As per the report, in 2014, there were 230 billionaires or multi-billionaires, which shot up to 831 in the 2018 in the BHI Rich List.

Earlier, in 2012, the figure was a modest 59 billionaires, which climbed to 141 in 2013. But after notching 230 billionaires in 2014, the list has grown phenomenally with 296 (2015), 339 (2016), 617 (2017) and now 831 billionaires in 2018.

Similarly, the number of USD billionaires in India in the past seven years at the prevailing exchange rates has shot up from 59 (2012) to 141 (2018) as the USD’s value grew from INR 55.60 to INR 68.40 during the period.

Among women, there was only one self-made billionaire in 2013, which increased to 11 in 2018. Women multi-billionaires shot up from just five in 2013 to 136 this year.

The cumulative wealth of these 831 individuals featured in the latest list stands at USD 719 billion, or one-quarter of the Indian GDP of USD 2,848 billion as per the IMF’s April 2018 estimates.

After Ambani, next comes S.P. Hinduja and family of Hinduja Group with estimated wealth of Rs 159,000 crore, Arcelor-Mittal’s L.N. Mittal and family at Rs 114,500 crore in the top bracket.

Following them are: Wipro’s Azim Premji at Rs 96,100 crore, Sun Pharmaceuticals Ltd’s Dilip Shanghvi at Rs 89,700 crore, Kotak Mahindra Bank’s Uday Kotak at Rs 78,600 crore, Serum Institute of India’s Cyrus Poonawalla at Rs 73,000 crore, Adani Group’s Gautam Adani and family at Rs 71,200 crore, Shapoorji Pallonji Mistry’s Cyrus P. Mistry at Rs 69,400 crore,

Five of the Top 10 belong to Maharashtra, one each from Gujarat and Karnataka, two are London-based and one is in Monaco, as per the rich list.

As expected, the country’s commercial capital Mumbai tops the billionaires’ list with 233 names, followed by New Delhi at 163 and IT capital Bengaluru at 70, said Barclays Private Clients CEO S.N. Bansal.

The annual list is a compilation of the super-richest Indians having a net worth of Rs 1,000 crore or more. This number has increased by a staggering one-third – from 617 in 2017 to 831 in 2018, said Hurun Report India’s Managing Director Rahman Junaid.

While 306 new entrants made it to the list this year, 75 of those featured in 2017 failed to find a place in the super exclusive club this year.

“The Indian edition of the list is the fastest growing rich list in the world, highlighting the optimism of a young, vibrant and ambitious country,” Junaid pointed out.

As far as top wealthy business clans are concerned, more than 50 percent of the businesses listed in the 2018 rich list belong to just 10 Indian families – Ambani, Godrej, Hinduja, Mistry, Shanghvi, Nadar, Adani, Damani, Lohia and Burman.

Four of these family-run businesses are in the first-generation and second generation, one is in third generation and one in fifth generation of operations.

“Wealth creation in India is growing at an unprecedented pace, and the time it takes to accumulate wealth is shorter than before,” said Bansal at the report launch.

IANS

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Rupee extends losses, nears 73 against Dollar

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New Delhi, Sep 25: The Indian rupee slipped in the early trade on Tuesday. It weakened by 33 paise to 72.82 against the US dollar. 

The rupee closed at 72.63 against the greenback on Monday.

The key Indian equity indices opened on a negative note today, owing to a weak rupee and rising crude oil prices.

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Key equity indices open in red

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Sensex down

Mumbai, Sep 25: The key Indian equity indices opened on a negative note on Tuesday, owing to a weak rupee and rising crude oil prices.

At 9.30 a.m., the wider Nifty50 of the National Stock Exchange traded at 10,918.85 points, lower by 48.55 points or 0.44 per cent from its previous close.

The BSE Sensex which had opened at 36,350.25 points, traded at 36,183.86 points, lower by 121.16 points or 0.33 per cent from its previous close of 36,305.02 points.

So far, it has touched an intra-day high of 36,454.03 points and a low 36,180.16 points.

IANS

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