Shadow trading – a new chapter in Insider Trading? Learnings from US SEC - Resolut Partners
contact@resolutpartners.com
717, Tower B, ONE BKC Mumbai - 400051
contact@resolutpartners.com
717, Tower B, ONE BKC Mumbai - 400051
Menu
Menu
Shadow trading – a new chapter in Insider Trading? Learnings from US SEC
Shadow trading – a new chapter in Insider Trading? Learnings from US SEC
May 14, 2024
Key Takeaways
In a novel case of Shadow Trading, California District Court held that MNPI about one company could count as MNPI for another company if they are economically linked
What is Shadow Trading? What is the concept of economically linked entities? How is international jurisprudence developing on Shadow Trading?
US law differs from Indian law on grounds of knowledge, materiality and intention – to that extent Indian law, arguably, maybe more equipped to deal with these situations
PE funds with multiple verticals or EFMs, and listco boards should consider revising UPSI/ MNPI policies to factor-in economically-linked companies
