Regulators using social media connections also for insider trading case

This order of SEBI is otherwise just another case where parties were found to have allegedly profited from insider trading. The only noteworthy point is that the connection between two of the parties was detected because they had common friends on social media. To my recollection, this is perhaps the first case where SEBI investigated the social media profile of the parties. The Hon’ble Wholetime Member observed :

“Mr. Pirani Amyn Abdul Aziz is also found to be connected to Mr. Ameen Khwaja through mutual friends on ‘Facebook’. “

Needless to add, SEBI also found the transactions of the party otherwise suspicious too. Social media connections are often used to do background checks. On their own, they can rarely be reliable indicators of connections.

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