Insider Trading in India: Regulatory Ambiguity Between Transparency and Market Exploitation

Abstract

This article delves into the persistent issue of insider trading in the Indian financial market, exploring its intricate dynamics and significant repercussions. It examines how concentrated ownership, opaque information dissemination, and networked insider circles contribute to the proliferation of insider trading. The detrimental effects on investor confidence, market integrity, and fair competition are discussed in detail. Additionally, the article evaluates the regulatory measures by SEBI to combat insider trading, highlighting the balance between stringent regulations and market innovation. Through case studies and comparative analysis, the article underscores the importance of transparency, ethical conduct, and international cooperation in addressing insider trading challenges and fostering a fair financial ecosystem in India.