Stock market insider trading in continuous time with imperfect dynamic information

Since inception, the growth of the Indian stock market has been constrained through unethical, illegal and self-actualized activities of swanky persons involved in different capacities in the market. The stock market was trying to retrieve itself from the devastating effect of Harshad Mehta share market scam, when within a gap of ten years it was once again pushed into the darkness of the dungeon by another demon-child of the country- Ketan Parekh. Corporations have been looted by the insider traders, diversifying internal information to an external in lieu of cash. Investigations in the majority cases have proved the involvement of the high ranking officers of the companies in the crime, sophistically referred to as white-collar crime. It has an adverse impact on the growth and sustainability of the share market. Under the light of the above issue, this paper endeavors to study the impact of such crime on the share market. It focuses on the mechanism behind the insider-trading, its impact on the share market and the regulators supervision on the issue. Finally, suggestions have been provided which will contribute towards the dream of every Indian-a fraud-free share market focusing towards the overall development of the country.

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Insider Trading and the Greek Stock Market

Business Ethics A European Review ◽

10.1111/1467-8608.00107 ◽

1998 ◽

Vol 7 (4) ◽

pp. 193-199 ◽

Cited By ~ 7

Author(s):

Panagiotis Lekkas

Keyword(s):

Stock Market ◽

Insider Trading

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Insider trading restrictions and the stock market: Evidence from the Amsterdam Stock Exchange

European Economic Review ◽

10.1016/0014-2921(95)00037-2 ◽

1996 ◽

Vol 40 (8) ◽

pp. 1591-1603 ◽

Cited By ~ 16

Author(s):

Rezaul Kabir ◽

Theo Vermaelen

Keyword(s):

Stock Market ◽

Insider Trading ◽

Stock Exchange ◽

Trading Restrictions

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Legal Insider Trading and Stock Market Reaction

Insider Trading ◽

10.1201/9781420074031.ch20 ◽

2008 ◽

pp. 385-402

Author(s):

Ilham Riachi ◽

Eric de Bodt ◽

Nihat Aktas ◽

Jan de Smedt

Keyword(s):

Stock Market ◽

Insider Trading ◽

Market Reaction ◽

Stock Market Reaction

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Efficient Market Hypotheses of Nepalese Stock Market

Pravaha ◽

10.3126/pravaha.v26i1.41874 ◽

2020 ◽

Vol 26 (1) ◽

pp. 187-198

Author(s):

Shanker Dhodary

Keyword(s):

Random Walk ◽

Stock Market ◽

Insider Trading ◽

Research Work ◽

Weak Form ◽

Efficient Market ◽

Parametric Test ◽

Auto Correlation ◽

Closing Price ◽

Weak Form Efficiency

The purpose of this paper is to examine the random walk hypothesis (RWH) by testing the weak-form efficiency in the Nepalese capital market. Descriptive, correlation and causal comparative research design has been used for analyzing the variables and different phenomenon. This research has been prepared only with the help of secondary data. Closing price of company has been collected and analyzed for the period 2015/16-2019/20. Thus researcher tried to analyze the market efficiency with the help of five years data (daily closing price).There are altogether around 233 companies listed in NEPSE. So to make this research feasible and simple researcher has selected only 10 companies from the NEPSE by using purposive sampling technique. In course of selecting company researcher has tried to incorporate only financial sectors as commercial banks, finance companies, insurance, and microfinance companies but development bank has not been taken as sample due to same nature of commercial bank. Researcher examined the weak form efficiency of the Nepal stock exchange (NEPSE) using auto correlation test (parametric test) and run test (non-parametric test) for the period of 2015/16-2019/20. Mainly this research work tested the efficient market hypothesis of Nepalese stock market with the help of daily closing price of 10 Sample Company of different sectors. The market is inefficient in the weak form implies that the NEPSE does not follow a random walk. This means that the NEPSE provides an opportunity for out- performance by skillful managers and investment specialists. Auto correlation exists in price of stock evident that there is high level of dependency of price of stock with the previous ones. It will be easy for speculator and trader to exploit the market and gain handsome profit from the market. All investor are not assumed to be rational in inefficient market, most of the people say investor are investing on the basis of market rumor. Market may be inefficient due the asymmetric of information and insider trading.

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Qualitative Analysis on Investment Decisions of Nepalese Stock Market Investors

Journal of Business Management Review ◽

10.47153/jbmr25.1422021 ◽

2021 ◽

Vol 2 (5) ◽

pp. 349-365

Author(s):

Rashesh Vaidya

Keyword(s):

Stock Market ◽

Insider Trading ◽

Investment Decision ◽

Investment Decisions ◽

Listed Companies ◽

Structured Interview ◽

Secondary Market ◽

Fundamental Aspect ◽

Macroeconomic Factors ◽

Stock Market Investors

The paper attempts to examine the experience of the Nepalese investors at the secondary market. The paper explored the investment decisions process of the Nepalese investors. The paper has adopted the grounded theory to generate the theory from the data collected from the semi-structured interview from the stock market investors having an academic background in management. The findings revealed that the investors are eager to invest in the stock market and go for a better experience from their trading at the NEPSE floor. The study exposed a mixed opinion in context to the understanding of the macroeconomic aspects and their influence on investment decisions. The investors forwarded that there is no relation between their investment decision-making process and the macroeconomic factors, while some of the investors stated that they see a connection of the economy with the stock market directly or indirectly. The study came out that the major concern of the Nepalese investors is a fundamental aspect of the listed companies while selecting for an investment. At the same time, investors stated that they go for technical analysis or follow the market trend for the short-term trading at NEPSE floor. The investors are seen at one point that the unstable political situation and insider trading have been major challenges, in context to the Nepalese stock market. Finally, the excessive flow of information related to the listed companies either with some validity or not, makes an investor’s investment decisions go wrong.

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