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Closing The Arbitrage Loophole:  Eliminating Regulatory ‘Grey Areas’ in Insider Trading

Written by Harshwardhan Sharma & Aarya Yadav 1. Introduction The decision in the case of Chandrakala Vs Adjudicating Officer, SEBI (Appeal No. 209 of 2011 Securities Appellate Tribunal (SAT) Mumbai) made by SAT asserted that “If an insider trades or deals in securities of a listed company, it may be presumed that he/ she traded on the basis of unpublished price sensitive information (UPSI) in his/ her possession unless contrary to the same is established”. This ruling has been dictating the standard burden of proof among the cases where there has been a violation of UPSI regulations. These regulatory reforms…

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Algorithmic Pricing and Competition Law: Why the Plus-Factors Test needs equal footing to the tacit agreement Reflex

Written by Nupur Bajoria ABSTRACT Algorithmic pricing exposes a structural weakness in India’s cartel framework: coordinated, supra-competitive pricing may arise without human communication. This paper argues that the Competition Commission of India’s (CCI) treatment of algorithmic pricing in Ms. Shikha Roy v. Jet Airways and In Re: Alleged Cartelization in the Airlines Industry was too dependent on the absence of express or tacit agreement. Read through the plus-factors approach in Express Industry Council of India v. Jet Airways, the relevant question is whether pricing is better explained by independent competition or by a computational environment capable of producing coordination. Shared…

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