Criminal and Civil Offences of Insider Dealing: UK Perspective

20 Pages Posted: 23 Apr 2018

Date Written: April 23, 2018

Abstract

Price sensitive data of a company are considered as confidential data which are exceptionally classified. These data must be revealed to the public in the instances where, the shares and the stocks of the particular company is traded in the securities market. However, some people use these confidential data to create a favorable position for themselves when investing in the shares of the particular company. The circumstance of unlawful information exchanging could be portrayed as the insider trading. Many countries around the world has identified these ‘data trading’ as illicit, and have implemented and enforced particular laws to limit unethical trade practices as such. This study concentrates on the necessity of legal directions to regulate data that is price sensitive in nature. The emphasis is likewise on the distinctive civil and criminal sanctions those are forced on the guilty parties. This study gives contentions that are identified with neoclassical market theories. Also this study additionally discusses the improvement of laws and regulations in England related to insider dealing and concentrates on the justification of the laws and regulations in insider dealing alongside the impacts of insider dealing on investors and the security market.

Keywords: Insider Dealing, Market Abuse, United Kingdom, Criminal, Civil, Market Equilibrium, Information Asymmetry

JEL Classification: K10

Suggested Citation

Wijesinghe, Prasadi, Criminal and Civil Offences of Insider Dealing: UK Perspective (April 23, 2018). Available at SSRN: https://ssrn.com/abstract=3167197 or http://dx.doi.org/10.2139/ssrn.3167197

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