Скачать или смотреть Insider Trading vs Front Running UPSC | Front Running UPSC | Stock Market Ethics UPSC

Insider Trading vs Front Running UPSC | Front Running UPSC | Stock Market Ethics UPSC #shorts #ytshorts

Front Running UPSC, Insider Trading vs Front Running UPSC, and Stock Market Ethics UPSC are key economic and ethical concepts relevant for GS3 (Indian Economy) and UPSC current affairs in English. This video explains one of the most common unethical practices in stock markets with a real-world example.

🔹 What is Front Running?

Imagine a mutual fund, which pools money from investors like A1, A2, and A3.

The fund manager decides to invest a large sum (say, to buy 10 lakh shares of a company).

This order is passed to a broker.

The broker, knowing that such a large order will raise the share price, buys the same stock in his own account first at ₹10.

After the mutual fund places its large order, the share price increases to ₹12.

Now, the broker sells his shares at ₹12, making an illicit profit, and later buys for the mutual fund at the inflated price.

➡️ This unethical practice is called Front Running — using confidential knowledge of a large order to make personal profit at the cost of the mutual fund and its investors.

🔹 Why is Front Running a problem?

Violates market integrity and fairness

Leads to investor losses

Considered a form of market abuse

SEBI (Securities and Exchange Board of India) considers it illegal

🔹 How is it different from Insider Trading?

Front Running involves misuse of client order information

Insider Trading involves misuse of non-public company information

This video covers:

Full explanation of Front Running UPSC

Role of mutual funds, brokers, and fund managers

Legal provisions and SEBI regulations

Case studies and past SEBI actions

Difference between Front Running and Insider Trading UPSC

Front Running UPSC, Stock Market Ethics UPSC, and Insider Trading UPSC are essential topics for economic and ethics-based UPSC answers.

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