An Analysis of Insider Trading Regulations: A Comparative Study of India, USA & U.K.

The impact of the regulatory bodies on offences related to insider trading is an aspect that requires much research and analysis. The legal framework, though different in the global scenario, has the same objective. The present article is an attempt to study the regulations of insider trading in three different countries. With the time and growth in the securities market, the actual reality of the insider trading has come. This kind of work destroys the trust of the investors like in a country like India who wants the foreign investors to invest with them are not able to get successful as they are new in this game. Various kinds of steps have been taken by the Parliament of India and the Securities and Exchange Board of India, but their actions taken regarding insider trading are almost equal to zero. USA has a very effective regulatory body named as SEC which has made a lot of impact in the securities market of the USA as it has punished a lot of criminals. UK on the other hand is also trying its best to catch USA and is doing a lot better than India. On the other hand, the regulatory body that India have is SEBI which is not able to get much amount of success. SEBI has given up a vast number of powers with it in the stock market but if we see the cases taken by it does not provide us with a good image. It clearly shows that our regulatory body requires a lot of amendments and implementation to make our security market healthy and fair in the eyes of the investors so that we can attract foreign investors towards us.