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Insider Trading In India: Regulatory Landscape And Implications




Chinoy Acharya, Bennett University

ABSTRACT:

This abstract gives an overview of the regulations that govern insider trading in India and the implications they carry. In India insider trading refers to the buying or selling of securities using information and it is strictly prohibited by the “Securities and Exchange Board of India (SEBI)”. The “SEBI (Prohibition of Insider Trading) Regulations, 2015” define who qualifies as insiders outline Unpublished Price Sensitive Information (UPSI) and prohibit trading while, in possession of UPSI. To promote transparency and compliance these regulations require companies to establish a code of conduct. Insiders must disclose their trading activities to allow regulatory authorities to monitor and enforce compliance effectively. Violating these regulations comes with penalties such as fines, disgorgement of profits and trading bans. The enforcement mechanism involves monitoring, investigations well as the authority to conduct searches and seizures when necessary. Companies often adopt clearance procedures to prevent unintentional violations. This comprehensive regulatory approach demonstrates a commitment towards upholding market integrity and fostering investor confidence, in India’s markets.

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Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878

Website: www.ijllr.com

Accessibility: Open Access

License: Creative Commons 4.0

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Licensing:

​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.

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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.

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