• Ajita Ananya

Insider trading refers to illegal or unlawful trading of securities which includes buying and selling of a publicly traded company’s securities while being in possession of the confidential material information which is not known to the public which results is disadvantage to the other stock holders. Insider trading or market manipulation is prohibited and is highly discouraged by the Securities and Exchange Board of India in order to promote fair trading of securities in the Indian stock market and for the general benefit of the common investor. In simple terms, insider trading or market manipulation refers to the use of material information that is not open to public for trading securities. This material information refers to and includes all the information pertaining to the securities of the company which may have a substantial impact on the decisions of an investor regarding buying or selling of securities. All of the non-public information includes that information which are not legally available for the public and only a bunch of people are aware of it. For example, a high-level employee who have the knowledge about the merger of his company and its impact informs this piece of information to an outsider who decides to buy more shares of the company in order to gain additional profits. The laws governing insider trading differ from country to country. In India the Securities and Exchange Board of India is responsible for regulating the capital market. Insider trading or market manipulation is prohibited by SEBI and the person found guilty of the same is charged with an imprisonment for a period of 5 years and a fine of Rs. 5 lakhs to Rs. 25 crores or three times the profit earned out of insider trading whichever is higher

Securities and Exchange Board of India, Securities Contract Regulation Act, Insider, Unpublished Price-Sensitive Information

"Insider Trading in Indian Stock Market and it's impact on Market Efficiency", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.10, Issue 11, page no.d131-d141, November-2023, Available :http://www.jetir.org/papers/JETIR2311315.pdf

"Insider Trading in Indian Stock Market and it's impact on Market Efficiency", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.10, Issue 11, page no. ppd131-d141, November-2023, Available at : http://www.jetir.org/papers/JETIR2311315.pdf