A REVISED INSIDER TRADING POLICY COULD BE MORE PRACTICAL IN THE INDIAN STOCK MARKET

AUTHOR – PRIYANKA SAHA AND BAISHALI DEBNATH, STUDENT AT AMITY UNIVERSITY KOLKATA

BEST CITATION – PRIYANKA SAHA AND BAISHALI DEBNATH, A REVISED INSIDER TRADING POLICY COULD BE MORE PRACTICAL IN THE INDIAN STOCK MARKET, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (4) OF 2024, PG. 201-207, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

Insider trading in India refers to the buying or selling of a company’s securities based on confidential information not available to the public. This practice undermines market integrity and investor confidence by giving an unfair advantage to those with access to sensitive information. Regulatory oversight in India has evolved significantly, with the Securities and Exchange Board of India (SEBI) playing a central role in monitoring and controlling insider trading activities. Following the landmark TISCO case in 1992, SEBI introduced the first set of insider trading regulations, which have since been updated with the SEBI (Prohibition of Insider Trading) Regulations, 2015, and further strengthened by amendments in 2019. Additionally, the SEBI Act outlines legal prohibitions and penalties associated with insider trading. These developments underscore India’s commitment to maintaining a transparent and fair financial market by reducing the risk of unfair trading practices.