The Study of Insider Trading in India

Abstract

In financial markets, "insider trading" refers to trading in securities such as stocks and bonds by corporate insiders who have exclusive information about the issuer of a particular instrument before it is published to the broader public. Insiders can take advantage of this. Profit by buying or selling stocks before they go up or down in price. Insider trading is more than just stealing confidential knowledge. Insider trading involves both rewards and drawbacks, and it is not always evident who are the guilty insiders and who are the sufferers. In recent decades, insider trading has gotten a poor rap. The mainstream media portrays it as a crisis.It is an evil behaviour in which those who indulge in it have no moral principles. However, not all Insider trading is immoral, and some studies have found that only certain types of insider trading are more harmful than others. Trading is actually advantageous to the investment industry as a whole. Some philosophers, lawyers, and economists disagree about whether insider trading should be punished at all, while others believe it should be prohibited in all cases. Both government regulators and academics are paying more attention to financial ethics. This study examines the subject of insider trading, its evolution in India, and the actions taken by the SEBI to combat it