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- Nestle India recently disclosed that it had received a notice from the country's market regulator regarding a violation of insider trading regulations "by a designated individual within the company."
- What is Insider Trading?
- Insider trading, also referred to as insider dealing, is the illegal act of buying or selling a company's shares by those who have access to non-public, price-sensitive information about that company.
- Who Qualifies as an Insider?
- The Securities and Exchange Board of India (SEBI) defines an 'insider' as anyone with access to confidential, material information regarding a company's securities. Insiders can include employees, directors, family members, lawyers, bankers, or any other individuals who have a connection with the company within the six months leading up to the trade.
- These insiders, with privileged information about a company’s stock, may exploit this knowledge to buy or sell shares before their prices change due to public disclosures, leading to personal profits.
- What is Unpublished Price Sensitive Information (UPSI)?
- UPSI refers to any confidential, material information that could affect a company's stock price, such as upcoming earnings results, mergers, acquisitions, or other significant corporate activities. If an insider trades based on UPSI before it becomes public, this is considered illegal.
- Insider trading is one of the most serious offenses in the financial markets. In India, such activities are governed by SEBI’s Insider Trading Regulations, 2015, which aim to ensure a fair and transparent market.
- To prevent these illegal activities and protect investors' interests, SEBI has prohibited companies from buying their own shares on the secondary market.
- Consequences of Insider Trading:
- SEBI holds the authority to impose penalties and ban individuals or organizations from participating in the capital markets if they are found guilty of violating these regulations. For example, if a company director leaks confidential information about a potential deal to a friend, who then shares it with others who buy stocks based on that information, SEBI may take action against all individuals involved for violating the Prohibition of Insider Trading (PTI) Regulations.
- The Chairman of the World Spice Organisation (WSO) recently highlighted that India holds only a modest 0.7% share in the global spice market, which is valued at $14 billion in 2024. This is significantly lower than China’s 12% share and the United States' 11%.
- About the World Spice Organisation (WSO):
- The World Spice Organisation (WSO) is a non-profit entity founded in 2011 in Kochi, Kerala, often referred to as the spice capital of India. It is registered under the Travancore Cochin Literary, Scientific, and Charitable Societies Act of 1956.
- Mission and Objectives: The WSO focuses on addressing the key challenges of "Food Safety & Sustainability" within the spice industry. Its mission is to foster collaboration between various stakeholders, including the public, industry, academia, and consumers, to achieve these goals.
- Key Initiatives: WSO is involved in several social responsibility projects that benefit the spice sector. The organization promotes sustainability and biodiversity through partnerships with prominent national and international entities such as the Spices Board India, Indian Institute of Spice Research (IISR), Rainforest Alliance, GIZ (Germany), and IDH – The Sustainable Trade Initiative (Netherlands).
- Global Collaboration: WSO works closely with international spice associations, including the American Spice Trade Association (ASTA), the European Spice Association (ESA), and the International Pepper Community (IPC), to tackle challenges faced by the global spice industry.
- Standard-Setting and Industry Representation: WSO participates actively in national and international standard-setting processes for spices, such as those set by FSSAI, BIS, ISO, and Codex. This ensures that the interests of the spice industry are represented in the development of these standards.
- Additionally, WSO is a key technical partner of the All India Spices Exporters Forum (AISEF).
- The Central Electricity Authority (CEA) recently issued new guidelines aimed at promoting the efficient allocation, sharing, and utilization of optical fibres, which are expected to enhance resource management across the power sector.
- About the Central Electricity Authority (CEA):
- The Central Electricity Authority (CEA) is a statutory body established under Section 3(1) of the Electricity Supply Act, 1948, which was repealed by Section 70(1) of the Electricity Act, 2003. It functions as an "Attached Office" under the Ministry of Power.
- Functions of the CEA: The CEA is entrusted with a wide range of responsibilities and duties as prescribed by the Central Government. These include:
- Advising the government on national electricity policy, developing short-term and long-term plans for the electricity system, and ensuring the optimal use of resources to support the national economy while providing reliable and affordable electricity to all consumers.
- Setting technical standards for the construction of electrical plants, electric lines, and grid connectivity.
- Establishing safety requirements for the construction, operation, and maintenance of electrical plants and lines.
- Specifying operational and maintenance standards for the transmission grid and setting conditions for the installation of meters for transmission and supply.
- Supporting the timely completion of projects to improve and enhance the electricity system.
- Promoting skill development for those working in the electricity sector.
- Advising the government on matters that could improve electricity generation, transmission, distribution, and utilization.
- Collecting and maintaining data on electricity generation, transmission, distribution, and consumption, and conducting studies on cost, efficiency, and competitiveness.
- Publicly sharing data and publishing reports and findings from investigations.
- Promoting research related to electricity generation, transmission, distribution, and trading.
- Advising state governments, licensees, and generating companies on operational improvements, often in coordination with other entities.
- Assisting the appropriate government and commissions on technical issues related to electricity.
- Organizational Structure: The CEA is headed by a Chairman, who is also the ex-officio Secretary to the Government of India. The body comprises six full-time members, each specializing in different areas:
- Member (Thermal)
- Member (Hydro)
- Member (Economic and Commercial)
- Member (Power Systems)
- Member (Planning)
- Member (Grid Operation and Distribution)
- In India, the rates for electricity per unit are determined by the State Electricity Regulatory Commissions (SERCs) for each state, in accordance with the Electricity Act, 2003, and the National Tariff Policy.