Good evening sir
Sir me and my friends discuss before taking trades, the discussions are always mutual we decide amongst ourselves and take trades from our own personal trading accounts … So is it by any chance a violation that we are recommending stocks to each other?
And can we disclose it in public that we guys trade as a team or will it be a violation in case SEBI knows
I don’t think that’s the case what if an advisory does the same to the other clients if that’s not an issue then this too won’t be an issue
Because we won’t be recommending others to push the price even further so that we can sell at higher prices
And what if we did the same as a partnership or company then that’s not the issue so why an issue when doing individually
Yes that will be classic example of it, that is you aquire stock from market then pursuade others to buy /spread rumors and tips so that others start buying the stock and then book profit.
But there are various provisions to this and differs case by case therefore I used word ‘might’ in my previous answer.
Let’s say a person after buying a stock recommends to a friend about it but then squares off the position before his friend but he informs his friend about the closed position will that be a pump and dump on a small scale?