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After reading the case, the students shall be able to explain the concept of insider trading and differentiate between illegal insider trading and legal insider trading, business ethics, financial institutions, financial markets and accounting; to interpret the legal framework for prevention of insider trading; to identify the role and significance of the market regulator, Securities and Exchange Board of India (SEBI), in detecting financial crimes such as insider trading; to demonstrate the association between information, stock trading and stock prices within the framework of efficient markets; and to appraise the ethical dilemma in a family-owned firm, where the family members of the promoter group are alleged to have indulged in a financial crime.

The case revolves around allegations of insider trading against the promoter and the promoter group of the family owned and controlled firm, Lux Industries Limited. On January 24, 2022, the SEBI, the regulator of securities markets in India, accused Udit Todi, the Executive Director of Lux Industries Limited, of engaging in insider trading through a chain of 14 connected parties. Udit Todi was also the son of the Managing Director, Pradip Kumar Todi, and the nephew of the Executive Chairman, Ashok Kumar Todi. In its interim order, SEBI alleged a breach of insider trading regulations by a group of 14 connected entities that had built up long positions starting from May 21, 2021, before the quarterly financial results (Q4) and the annual results of the financial year (FY) 2021 in the equity shares of Lux Industries Limited, with its registered office in Kolkata, India, were announced. Subsequently, they squared off the long positions to make a profit of ₹29.43m. To restore the confidence of the investors, the Executive Chairman, Ashok Kumar Todi, needed to review the matter expeditiously and impartially. Taking into consideration the family ties of the accused, it was not going to be an easy task, yet, it had to be done. The case highlights the role of the regulator, SEBI, in unearthing financial frauds such as insider trading in an emerging market such as India.

Postgraduate programs in management, Executive education programs.

Teaching notes are available for educators only.

CSS 1: Accounting and Finance

The purpose of this paper is to demonstrate failures of self‐regulation among RI actors following the current economic crisis. It also seeks to propose specific regulations for the investment business. The paper questions whether financial capitalism can support sustainability.

The paper summarizes the crisis; defines what is at stake; critically reviews the various forms of responsible investment; describes conflicts of interest in CSR and RI; and suggests regulatory measures to correct systemic problems. It tests RI/SRI/ESG against the reality of portfolio construction, and identifies the implications of their shortcomings.

The paper finds that RI/SRI/ESG best in class portfolios are challenged for various reasons; engagement activities are challenged due to the structural inadequacies in the industry; SRI fund managers themselves do not use SR; CSR does not address strategic core business matters; conflicts of interest on the way plague the investment supply chain; and private equity may enable progress in RI.

More research is required on the theory of RI and current systemic constraints.

Specific regulatory measures to counteract systemic failures are identified here.

The scope of the critique and findings is original. Value is the real experience of a working practitioner who is sympathetic to RI/SRI/ESG.

This paper proposes that if a political system is more like to facilitate a unified government, to establish a strong executive body and to respond to the needs of the majority, financial reforms are more likely to emerge from the policymaking process and produce positive results. On the contrary, political systems that discourage those governing features are less likely to produce reforms. This chapter compares financial reform processes in China, Taiwan and New Zealand. All of them performed low level of financial reforms in the early 1980s but resulted in different situations later. In the mid-2000s, New Zealand heralded the most efficient and stable financial system; while Taiwan lagged behind and China performed the worst. Evidence showed that China’s authoritarian system may be the most superior in forming a unified government with a strong executive, but the policy priority often responds more to the interests of a small group of power elites; therefore the result of financial reform can be limited. Taiwan’s presidential system can produce greater financial reform when the ruling party controls both executive and legislative bodies, but legislative obstructions may occur under a divided government. New Zealand's Westminster system produces the most effective and efficient financial reform due to its unified government and a strong executive branch with consistent and stable supports from the New Zealand Parliament.

In the past 20 years, Macao has experienced phenomenal economic growth driven by the liberalization of its casino sector. This growth has been enabled by massive influxes of foreign capital and migrant labor that have dramatically altered the city’s ethnic landscape. In this paper, the author examines the demographic changes Macao has experienced as a result of the casino boom, and situates the city’s current economic growth and ethnic diversification within its long history as a multi-ethnic city.

Building on Nancy Foner’s notion of “contexts of settlement,” the study draws on census materials, policy statements, newspaper articles and ethnographic materials to examine how changing ideologies of globalization help shape the categories through which ethnic diversity itself is conceptualized.

The paper has three main findings. First, despite the Macao government’s multicultural rhetoric, its labor and residency policies that prevent migrant workers from settling in Macao may paradoxically serve to maintain the ethnic status quo ante. Second, the new contexts of settlement engendered by Macao’s casino globalization may be amplifying fissures within the ethnic category “Chinese.” And third, discourses of globalization, regulations on immigration, and classificatory systems governing ethnic diversity that were instituted under Portuguese rule have both helped shape these new contexts and been reworked in the process.

As the processes of urbanization, economic integration and transnational migration continue to accelerate throughout East Asia, the goal of creating inclusive, equitable multi-ethnic urban societies will require closer examination of the relationship between particular modes and ideologies of “global” engagement, patterns of and policies toward migration and the concepts and categories through which diversity is measured. This approach to understanding multi-ethnic Macao may serve as an example.

In response to the potential collapse of large financial institutions in 2007, the U.S. government committed trillions of dollars to loans, asset purchases, guarantees, direct spending to provide fiscal stimulus, expansionary monetary policy, and bailouts of various private financial institutions. The bailouts were especially controversial because public money was used to protect private financial institutions and their wealthy executives while ordinary citizens received no such protection. One outcome of the government's response was the proposal to enact into law the Volcker rule, which prohibited banks from engaging in proprietary trading, or trading for their own---not their clients'---benefit. Proprietary trading was believed to generate up to 10 percent of total trading revenues, which would have exceeded $5.9 billion in 2010 for the six largest American banks alone. If the Volcker rule were to become law, government agencies, including the Federal Reserve, the Securities and Exchange Commission, the FDIC, and the Office of the Comptroller of the Currency, would write the detailed regulations that would implement the law. These agencies employed civil servants but were run by political appointees with technical backgrounds. After issuing a notice of proposed rulemaking the agencies would solicit comments from the public, which would help shape the regulations. Executives of large banks needed to decide how to respond to this potential change in their business environment.

After analyzing the case, students should be able to: Understand and map out the various interests at work in shaping a regulation Develop a nonmarket strategy for a company facing a potential regulatory change Predict the likely outcome of a proposed regulation

May 6, 1969 Building — Safety regulations — Application — “Affect” — Workman's presence in particular place not reasonably foreseeable by employer — Whether workman affected by regulations — Workman not expressly forbidden to go to place in question — Whether impliedly authorised or permitted to be there — Workman's presence there unforeseeably foolish — Whether resulting accident entirely own fault — Liability of employers — Building (Safety, Health and Welfare) Regulations, 1948 (S.I. 1948, No. 1145), regs. 4(1), 27(2), 28(1).

To evaluate the effectiveness of ventilation systems in outdoor jackets, two jackets were purchased and modified, one made of PTFE laminated fabric and the other made of polyurethane coated fabric. Six male subjects undertook exercise routines simulating fell walking while wearing these jackets. The skin temperature at four different locations and the amount of perspiration generated during exercise were recorded for analysis. The experimental results were analysed using two‐ way analysis of variance. From the analysis it was found that during the exercise the design of the pit zip openings, especially with pit zip openings at both sleeve and side seams, in a jacket has an effect on thermal regulation, limiting the rate of temperature increase; however, during rest it is the fabric that plays the more important role. The results for the period of exercise suggest that the provision of ventilation at appropriate positions in the jacket could contribute considerably to heat loss irrespective of the use of breathable fabrics.

The purpose of this study is to process the wettability surface of the ZrO₂ ceramics to improve their surface friction performance.

Microtexture was processed on the surface of ZrO₂ ceramics using a femtosecond laser. The three-dimensional texture morphology, surface contact angle, friction curve and wear morphology were measured by the laser confocal microscope, the contact angle meter, the reciprocating friction and wear tester and the scanning electron microscope, respectively. Based on Wenzel and partial impalement models, a geometric model of micro pits is established to study the influence mechanism of micro pit depth, diameter and distribution density on wettability and to analyze the relationship between surface wettability and tribological properties.

The results show that changing the geometric characteristics of the texture will lead to a change in the solid-liquid contact mode, and then lead to a change of in the surface contact angle. Wettability is an essential factor that affects the reduction of surface friction. The construction of a reasonable texture can enhance the surface hydrophilicity, which is conducive to the formation of a lubricating film on the ceramic surface, thereby reducing abrasive and adhesive wear, and improving the wear resistance of the ZrO₂ ceramic surface.

The results provide a theoretical reference for femtosecond laser surface texture wettability regulation and tribological performance improvement.

This chapter presents a theoretical framework of the industrial relations (IR) system in China’s coal mining industry, combining the roles of management organizations, workers, and trade unions, as well as government agencies. It is one of the first empirical attempts to investigate the relationship between human resource (HR) practices, labor relations, and occupational safety in China’s coal mining industry over the past 60 years, based on the secondary data on coal mining accidents and case studies of two state-owned coal mines in a northern city in Anhui Province, China. The fluctuating occupational safety has been affected by government regulations over different time spans, marked by key political agendas, and by coal mining firms taking concrete measures to respond to these regulations, while exhibiting differing safety performance in state-owned versus township-and-village-owned mines. The field studies compared a safety-oriented to a cost-control-oriented HR and labor relations system, and their influences on safety performance. Coal mining firms and practitioners are advised to shift the traditional personnel management paradigm to a modern HR management system. In addition, although workers are often blamed directly for accidents, it is suggested that workers’ participation and voice in various processes of decision-making and policy implementation, and trade unions’ active involvement in protecting workers from occupational hazards, be encouraged.

Ores and minerals are extracted from the earth’s crust depending on the type of deposit. Iron ore mines come under massive deposit patterns and have their own mine development and life cycles. This study aims to depict the development and life cycle of large open-pit iron ore mines and the intertwined organizational design of the departments/sections operated within the industry.

Primary data were collected on the site by participant observation, in-depth interviews of the field staff and executives, and field notes. Secondary data were collected from the literature review to compare and cite similar or previous studies on each mining activity. Finally, interactions were conducted with academic experts and top field executives to validate the findings. An organizational ethnography methodology was employed to study and analyse four large-scale iron ore mines of India’s largest iron-producing state, Odisha, from January to April 2023.

Six stages were observed for development and life cycle, and the operations have been depicted in a schematic diagram for ease of understanding. The intertwined functioning of organizational set-up is also discovered.

The paper will benefit entrepreneurs, mining and geology students, new recruits, and professionals in allied services linked to large iron ore mines. It offers valuable insights for knowledge enhancement, operational manual preparation and further research endeavours.