Sebi probes insider trading in loan scam

Nov 27, 2010 - Mumbai |

Market watchdog Sebi has initiated a probe into possible front-running and insider trading in shares of over two dozen companies, including some blue chips, by entities and persons involved in the housing finance scam unearthed by CBI.
The initial findings, when corroborated with the charges made by the CBI, indicate towards a large-scale front-running deals or shares being purchased or sold in these companies on the basis of prior knowledge about investment decisions being made by large institutional investors, a senior Sebi official said.
Besides front-running, the regulator is also looking into possibility of insider trading by the top officials.
The probe would encompass large dealings and any irregular spurt in volumes or prices of shares of all the companies where these institutional investors had bought or sold shares over the past two years, they said.

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