The Tragic and Needless Destruction of Raj Rajaratnam, Price-Giver Extraordinaire

[warwickuni]

The Tragic and Needless Destruction of Raj Rajaratnam, Price-Giver Extraordinairehttps://www.forbes.com/sites/johntamny/2021/12/08/the-tragic-and-needless-destruction-of-raj-rajaratnam-price-giver-extraordinaire/?sh=6046324d44b8​

Another pint on "insider dealing" . For comments

 

[imhotep]

On the 11 December I posted the full interview on CNBC.

https://elakiri.com/threads/raj-rajaratnam-cnbc-full-interview.2022037/

Somewhere in 2011 Raj said that Insider Trading cannot be considered as an offence. All I know is that in other countries too, people end up in jail for insider trading.
There's a lot of debate on this and I am not in the finance business to comment. But a jury did find him guilty of insider trading whatever his excuses are.

Also read this too...
https://dealbreaker.com/2021/12/rajaratnam-book-review

 

[warwickuni]

On the 11 December I posted the full interview on CNBC.

https://elakiri.com/threads/raj-rajaratnam-cnbc-full-interview.2022037/

Somewhere in 2011 Raj said that Insider Trading cannot be considered as an offence. All I know is that in other countries too, people end up in jail for insider trading.
There's a lot of debate on this and I am not in the finance business to comment. But a jury did find him guilty of insider trading whatever his excuses are.

Also read this too...
https://dealbreaker.com/2021/12/rajaratnam-book-review

he has written a book "Uneven Justice The Plot to sink Gallion.
His position is "Insider Dealing" offence can only be used against the first person who reveal the inside information of a company knowing that it is price sensitive information. This is a very narrow interpretation. It will be difficult to find the first person as it would be 'information theft" which may be charged under "Cyber Crime" or civil action for breach of trust, than insider information offence.
Insider information always distort market as it is only given to few who got access (for money or not). Companies are penalized for non disclosure of price sensitive information.
If his interpretation is accepted , this offence will be a dead letter!
We do have Insider Dealing offence in our law books for more than quarter of a century but there was no prosecution ended in conviction. It had a good start in early 2000 where they investigated a chairman of blue chip (conglomerate) but this prosecution was stalled by Supreme Court . (This is prior to MR's illegl Helping Hambantota funds investigation was stalled by CJ S.NSilva who appologized for doing that after retirement on political rally at Narahenpita Market!!)

New SECAct No 19 of 2021 section 137 prohibits 'insider' from dealing with shares in exchange irrespective of whether such person is first person to reveal or otherwise or "connected with the company " or otherwise. So even you and me commits an offence is we have in possession of such information and deals with such shares(buys , sells or enter in to contract to deal such shares ), as long as such information is not 'generally available".

Though this offence has no application to Bond market in Sri Lanka. this is the alleged conduct relating to perpetual securities and former gov or CB where he alleged to have given some 'inside ' information to his relative in perpetual treasury which was a primary dealer.
We do not have a criminal offence regarding 'insider dealing' in Bond Market. (even in 2021 Act only deals with shares and not bonds. The Act that deals with Bonds is a very old Ordinance Registered Stock and Securities Ordinance which has no provision to punish criminally for "insider dealing"

 

[hodakolla]

BUMPER

 

[zid2021]

I have zero sympathy for this guy. Small investors get fucked because of guys like this.