The Financial Services Authority (FSA) is continuing its crackdown on insider trading with the launch of the watchdog’s third criminal prosecution this year.

The watchdog confirmed that Matthew and Neel Uberoi have been charged with 17 counts of insider dealing in an indictment filed at the City of Westminster magistrates court.

The pair exploited inside information to trade thousands of shares in two companies over a four-month period in 2006, the indictment said.

The watchdog, which has been criticised for its poor record on policing insider dealing, has vowed to bring more criminal prosecutions in a bid to clean up the City of London, which it accepts suffers from an unacceptably high level of market manipulation.

In January, the watchdog launched its maiden insider trading prosecution charging the former general counsel of TTP Communications, a telecoms group, and his father in law of trading on inside information about an upcoming takeover.

Last week, Malcolm Calvert, a former partner at Cazenove, appeared in court on 12 charges of insider dealing relating to trades made after he had retired from the Queen’s stockbroker.

All deny any wrongdoing.

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