Case Study 1

 “The Advance Tender Tip”

Scenario:

Myo Min, a Procurement Manager at Concordia, learns that the company will soon win a large government tender for medical equipment worth MMK 5 billion. This tender is confidential and not yet announced.

He tells his cousin, who is a stock trader, “Something big is coming. You should buy our company’s shares quickly.” His cousin buys 5,000 shares the next day.

Issue:

Myo Min leaked material, non-public information (the upcoming tender win) before it was officially disclosed.

Even though Myo Min didn’t trade himself, he tipped his cousin, which is illegal insider trading.

Takeaway:

Disclosing confidential business information to any third party—even family—can result in severe legal and disciplinary actions. Tipping is a violation, even if the tipper doesn’t trade.