SHELTER INFRA PROJECTS LTD – Notice of Board Meeting for Discussion on…

In regards to insider trading, communication has been sent to the Stock Exchange on March 18, 2025, regarding the suspension of trading activities. This practice refers to the illegal use of privileged information by individuals within a company to gain an advantage in the stock market. Insider trading is prohibited by law due to its unfair and harmful nature towards other investors who do not have access to the same confidential information. It undermines the integrity of the financial markets by creating an uneven playing field for participants. Those caught engaging in insider trading can face severe legal consequences, including hefty fines and imprisonment.

Insider trading can take various forms, such as buying or selling stock based on confidential information about a company’s financial performance or upcoming announcements. This information is not available to the general public and can significantly impact the stock price once it is made public. By acting on this information before it is disclosed to the wider market, insiders can make substantial profits or avoid losses that other investors may suffer. This unethical practice erodes trust in the financial system and damages the reputation of companies involved in such activities.

The implications of insider trading extend beyond financial markets and can have broader economic consequences. It can distort competition, reduce market efficiency, and erode investor confidence in the fairness of the system. Insider trading undermines the principles of transparency and fairness that are essential for maintaining a well-functioning and trustworthy financial environment. Regulators and law enforcement agencies are vigilant in detecting and prosecuting cases of insider trading to uphold the integrity of the markets.

Efforts to prevent insider trading include strict regulations, surveillance mechanisms, and enforcement actions. Companies are required to establish internal controls and procedures to prevent unauthorized disclosure of confidential information. Employees, executives, and board members are often subject to strict rules regarding trading their company’s stock. Violations of these rules can result in severe penalties and damage the careers of individuals involved. Market regulators continuously monitor trading activities and investigate any suspicious patterns that may indicate insider trading.

Investors and stakeholders play a crucial role in combating insider trading by reporting any suspicious activities or transactions that raise concerns. Transparency and accountability are essential in maintaining trust in the financial markets and ensuring a level playing field for all participants. By adhering to ethical standards and promoting a culture of integrity, companies can contribute to a more sustainable and trustworthy investment environment. Insider trading poses a threat to market integrity and investor confidence, and it is essential to remain vigilant in detecting and preventing this illegal practice.