Its hard to predict stock prices unless one has made safe bets in bluechip shares, and one can never tell when a strong unit may crash or when a lesser-known firm may suddenly gain value. SEBI has been investigating almost 200 cases of insider trading, where people use access to confidential information about launches and policies that may affect stock prices, to make profits by investing accordingly.
Among major firms being investigated for insider trading, directors of healthcare chain Wockhardt have settled a case with the Securities and Exchange Board of India.
While the hospital paid Rs 36 lakh for the settlement, its three directors paid more than Rs 13 lakh.
Settled without accepting findings
They settled the case without accepting or denying the findings in the case and the conclusions made after the investigation.
In 2022, SEBI had sent the directors a show cause notice for failing to enforce an internal code for preventing insider trading.
They were also pulled up for not disclosing information about the issuance of Form 483 which indicates an adverse observation by the USFDA to its plant in Maharashtra.
