INSIDER TRADING UNDER THE INDIAN CORPORATE LAW REGIME – AN OVERVIEW

AUTHORS – VIJAY PRATAP SINGH* & MR. AYUSH SARAN**, STUDENT* & ASSISTANT PROFESSOR** AT AMITY UNIVERSITY LUCKNOW

BEST CITATION – VIJAY PRATAP SINGH & MR. AYUSH SARAN, INSIDER TRADING UNDER THE INDIAN CORPORATE LAW REGIME – AN OVERVIEW, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (4) OF 2024, PG. 921-927, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract

This abstract delves into the intricate dynamics of corporate governance, insider trading, and market regulations, particularly focusing on the Indian context. It explores the evolution of corporate governance frameworks, highlighting the influence of global movements such as the Cadbury Committee’s recommendations. The narrative emphasizes the importance of transparency, accountability, and professionalism in corporate practices, showcasing the shift from traditional family-dominated businesses to modern institutionalized structures.

The abstract also touches upon the concept of insider trading, delineating its legal and illegal aspects and the regulatory efforts to curb unfair advantages in securities trading. It discusses the historical context of insider trading, referencing shifts in societal perceptions from viewing it as an advantage to recognizing it as a crime against shareholders and market integrity.

Furthermore, the abstract underscores the ongoing challenges in corporate governance, including the need for independent directors, robust disclosure norms, and the role of institutional investors in enhancing accountability. It reflects on the regulatory landscape in India, acknowledging progress while also highlighting persisting issues such as poor disclosure levels and opaque corporate structures. Overall, this abstract provides a comprehensive overview of the complexities and evolving paradigms in corporate governance and market regulations, drawing insights from global trends and contextualizing them within the Indian business landscape.