Mobile tower records of 3 alleged co-conspirators corroborated charge in insider trading case that they’d worked in close concert

Order in SAT Appeal No 261 of 2018 involving Regulation 11(1) of the SEBI (Prohibition of
Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003

In 2009, SEBI (and later, the SEBI Appellate Tribunal in the same case), convicted several persons of insider trading and conspiring to manipulate prices of a particular scrip in 2008 based on mobile phone tower records that gave away the locations of the main accused - and proved that they were in the same vicinity at the same time, when the plan was being hatched/ implemented.

One should be aware that such data gets recorded routinely - effectively tracking every move one makes. So we are not speaking only of data relating to text messages that we send and receive, the voice calls that we make or receive, and the websites and email accounts that we check out. Mobile companies can and do record the websites we visit using the "incognito" mode on our mobile browsers, and Google, Facebook and fitness device makers, among others can and do record where we are at what time, for example. Thanks to this case, at least in quasi-judicial proceedings like SEBI and SAT, digital and mobile tower data is now accepted as evidence.

Rajesh Haldipur
Rajesh Haldipur

Founder, Law Gyani

Rajesh is a qualified CA & CWA. He has served as a Director of PricewaterhouseCoopers, a Director of a large urban co-operative bank and Dean of a B-School over the years. He has taught Finance for over 20 years & trained participants from several Companies and B-Schools. He is an educator and a learner (he believes both are inextricably intertwined), and a knowledge product developer. Law Gyani, which he has founded to help Law Students with their exam preparations, and to understand nuances of the law.


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