INSIDER TRADING IN INDIA: LEGAL FRAMEWORK, ETHICAL IMPLICATIONS, AND EVOLUTION OF REGULATORY PRACTICES

AUTHOR – HARSH ASRANI, STUDENT AT UNITEDWORLD SCHOOL OF LAW, KARNAVATI UNIVERSITY

BEST CITATION – HARSH ASRANI, INSIDER TRADING IN INDIA: LEGAL FRAMEWORK, ETHICAL IMPLICATIONS, AND EVOLUTION OF REGULATORY PRACTICES, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (6) OF 2025, PG. 01-09, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

Financial market integrity suffers from major ethical along with legal challenges due to insider trading activities. When participants use unpublicized price-sensitive information for personal gain it breaks market equilibrium while it destroys investor trust and harms corporate responsibility. This research paper analyzes Indian insider trading regulation while tracing the development of rules made by SEBI and the Companies Act of 2013 against international governance standards. The research study investigates insider trading as a white-collar offense by exploring its deceptive behavior as well as violations of fiduciary responsibilities and financial manipulation practices. Judicial court decisions and regulatory modifications demonstrate how suspicious evidence helps courts determine who possesses UPSI. This research analysis demonstrates through historical explanations alongside legal complexities and moral implications that strong enforcement systems must exist to safeguard both market stability and investor welfare.