Insider Trading- An Analysis Of Indian Legal Position

Kunal Sharma, O.P. Jindal Global University


As a means of conflicting and reconciling interests and rights of its citizens, a wide variety of behavioral rules are established by every country. To govern individual social interaction rules are designated. The absence of information symmetry and failure to establish conditions for a perfect competition gives an upper hand to some participants through utilizing regulatory inadequacy to avail the unfair advantage of investors. With the aim to assure that no individual in a market gains an advantage by trading on ‘unpublished’ information or ‘insider’, insider trading regulations and laws are designed. The foundations of such laws lie to form a level playing field whose essence is to allow all participants to access the information equally. Decreasing the cost of equity and increasing market liquidity are some factors which the enforcement of insider trading laws results in.1 Based on the foundation of efficiency and equity, insider trading laws aim to ensure access of the same set of information to all the participants and discloser of material information available to a participant to all the participants.

Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878


Accessibility: Open Access

License: Creative Commons 4.0

Submit Manuscript: Click here

Open Access Logo


​All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.


The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.