Abstract

The practice of insider trading is rapidly gaining prominence in tandem with the evolving landscape of our corporate era. In light of the flourishing presence of social media platforms, the realm of insider trading regulation has undergone a transformative evolution in recent years. The advent of technological advancements in the realm of information dissemination and market access has undeniably catalyzed the emergence of novel market structures, alongside innovative approaches to market manipulation. Unsurprisingly, individuals with privileged access exploit these lenient regulations to partake in the illicit practice of insider trading. The individuals provide directives to the company, urging the acquisition and disposition of shares at favorable prices, with the aim of augmenting the worth of their personal ownership interests It is imperative to acknowledge that the practice of unfair trading entails significant repercussions for investors, as it surreptitiously redistributes value from public investors to those with privileged access. The prevailing circumstances necessitate urgent measures to address the pervasive occurrence of white-collar offenses, particularly insider trading, and the consequential mispricing of equity markets prior to their listing on the securities exchange. It is imperative that effective control mechanisms be promptly implemented to rectify this situation. The present article delves into the intricate aspects surrounding the legal ramifications of insider trading, as they have evolved within the jurisdictions of the United States, the United Kingdom, and India. The article proceeds to conduct a thorough analysis of the comparative facets pertaining to the regulatory mechanism. The author endeavors to proffer a recommendation aimed at mitigating the pernicious phenomenon prevalent within the corporate realm.

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