Insider Trading Beyond Borders: Comparative Legal Challenges And Enforcement Gaps
- IJLLR Journal
- Jun 29
- 1 min read
Manya Garg, B.Com. LL.B. (Hons.), Jindal Global Law School, O.P. Jindal Global University, Sonipat, India
ABSTRACT
The globalization of financial markets has made insider trading a complex issue that transcends borders, raising various questions about jurisdiction and enforcement. This article delves into how varying national laws complicate the process of holding foreign actors accountable. It begins with an overview of insider trading regulations in India, then compares the regulations in the United States, the European union, and the United Kingdom. A significant topic discussed is the challenge of jurisdictional overlaps and enforcement gaps, particularly when material non-public information is acquired in one country but used for trading in another country. Regulator face various challenges when investigating and prosecuting these activities including limited avenues for information sharing, a lack of binding international agreements and concerns related to national society. By examining different legal frameworks and enforcement practices, the article sheds light on the extraterritorial reach of insider trading laws. Furthermore, it explodes how emerging technologies like AI and anonymous trading platforms complicate these jurisdictional issues even further. The article concludes by proposing suggestions such as standardising insider trading laws, etc. Ultimately, a unified international effort is a essential to uphold market integrity and effectively that across border inside trading.
