A Critical Evaluation of India’s Regulatory Framework and Its Initiatives to Combat Insider Trading

Insider trading has become a widespread issue in many countries. It refers to the buying or selling of a company’s securities by individuals who have access to confidential, non-public information about that company. An "insider" is someone who has received or had access to this unpublished, price-sensitive information. This practice represents a violation of fiduciary duty and is considered an economic crime. If left unchecked, insider trading can hinder economic growth, reduce capital inflows and foreign investments, and tarnish the reputation of India’s securities market. Ultimately, it poses a significant threat to the development of a robust securities market and undermines its integrity.