Insider trading is a term used to describe the buying or selling of securities by individuals who have access to confidential information about a company. This practice is illegal in many countries, including India, where it is regulated by the Securities and Exchange Board of India (SEBI). This research work is undertaken to study, and examine the legal mechanism prevalent in India and assess the extent to which it has been implemented by interpreting cases taken up by the Courts. The research shall demonstrate and analyse various aspects of Insider trading, and evaluate the effect of this practice on the fidelity of a company towards the securities market and the common investor. The project aims to identify the legal and economic consequences of such practices with a detailed aspect of rules and regulations that are made to control such practices. Further, the research shall focus on some of the landmark cases in the history of Insider trading in India and will try to contemplate the outcomes of those cases.