Facebook friends may be treated as connected for Insider Trading

SEBI in its order dated February 04th, 2016  In the matter of trading in the shares of Palred Technologies Limited by Mr. Palem Srikanth Reddy  and 14 Others vide its order No. WTM/PS/152/IVD/FEB/2016 has  observed that having “mutual friends” on Facebook will form the basis of determination  and to establish connection between the parties who have committed Insider Trading in Violation of SEBI (Prohibition of Insider Trading) Regulations, 2015. It seems to be first instance when SEBI has considered Facebook Profile as a Factor in consideration of  connection between the part...