In most sophisticated economies, insider trading is viewed as a serious crime as it breaches the underlying trust among stakeholders in a free and fair capital market.
However, insider trading violations and leakage of unpublished sensitive information (UPSI) have become increasingly common, even though the consequences can be severe and cause reputational damage.
In the recent years, SEBI brought about wide-ranging regulatory amendments to make market manipulations easily identifiable and to ensure a fair and level playing field in the Indian capital markets.
KPMG in India helps clients to meet challenges connected with changing regulations, by helping them in different ways :
- set up process and controls to prevent insider trading by conducting review of related policies and procedures,
- conduct a diagnostic UPSI leakage risk assessment,
- provide e-learning course to sensitize employees on regulatory requirements and UPSI .
- KPMG Trading compliance manager, a web-based compliance software to automate reporting, approvals, disclosures relating to company securities and meet the regulatory requirement of digital database.