Insider Trading Detection: Analytics for Banking Securities

Use transaction analytics and communication patterns to detect potential insider trading in bank securities and investment products.

## Background

SEBI detected 847 insider trading cases in 2024, with several involving bank employees trading on non-public information. A leading private bank wants to proactively monitor employee trading patterns.

## Scenario

You are building a surveillance system for a bank's compliance team. The system must:
- Monitor employee trading in bank securities
- Detect unusual patterns before earnings announcements
- Cross-reference with access to sensitive information
- Flag potential violations for investigation

## Available Data

- Employee trading records (last 3 years)
- System access logs (which databases/files accessed)
- Organizational hierarchy and role changes
- Earnings announcement dates and blackout periods
- Communication metadata (email patterns, not content)
- Market data (stock prices, volumes)

## Detection Challenges

- Distinguish legitimate trading from insider trading
- Account for family member trading
- Handle delayed reporting requirements
- Consider pre-clearance approvals

## Regulatory Framework

- SEBI PIT Regulations 2015
- Bank's Internal Code of Conduct
- Trading window restrictions
- Disclosure requirements