Sebi to banks: Stop insider breaches

SECURITIES AND EXCHANGE Board of India chairman Tuhin Kanta Pandey on Wednesday exhorted banks to strengthen their internal controls to prevent a breach of insider trading regulations.

- NESIL STANEY

The regulator noted that weak controls were the main cause of fraud.

"Insider trading risks thrive where controls are weak — where processes are unclear, responsibilities are undefined, and oversight is inconsistent," Pandey told bank CEOs. The meeting with bank chiefs comes against the backdrop of Sebi's June interim order against some top executives at Indusind Bank for violation of insider trading norms.