Insider Trading: A Comparative Appraisal of Regulatory Norms and Legal Mechanisms in India vis-à-vis the United Kingdom under the Realm of Securities Legislation

  • Jwaalaa Suresh
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  • Jwaalaa Suresh

    Student at Kirit P Mehta's NMIMS School of Law, Navi Mumbai, India

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The trading of securities stands as one of the most prominent global investment activities, where the public engages with shares of companies listed on stock exchanges, contributing investment funds to facilitate operational endeavors. However, certain company officers, such as Key Managerial Personnel (KMPs) and Directors, engage in the illicit practice of insider trading by utilizing confidential non-public information to trade securities, potentially impacting share prices. To address such occurrences, robust securities legislations have been implemented. This research paper delves into the jurisdictions of India and the United Kingdom to assess the efficacy of existing laws in mitigating insider trading offenses. Specifically, the paper focuses on recent landmark judgments, such as SEBI v. Abhijit Rajan in India and FCA v. Martyn Dodgson in the UK. It critically examines the nature of criminal and civil sanctions applicable to insider trading offenses, questioning the presence of corporate criminal liability for corporations in both jurisdictions, as punitive measures predominantly target individuals. Furthermore, the paper analyzes the regulatory capabilities of SEBI and FCA as overseers of the securities market in resolving associated issues. Extensive deliberations concerning essential amendments required in the securities legislation regime are also presented. Moreover, the discussion extends to corporate governance practices within companies in both jurisdictions to combat insider trading effectively.


Research Paper


International Journal of Law Management and Humanities, Volume 6, Issue 5, Page 491 - 503


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This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (, which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.


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