Insider Trading The Moral Dilemma Of When Its Legal And Illegal
- IJLLR Journal
- Jul 19, 2023
- 1 min read
Chaitanya Tendulkar, Symbiosis Law School Nagpur
ABSTRACT
In todays world insider trading is on the rise and it is one of the numerous frauds happening in securities market. This papers main aim is to understand what is insider trading. It also explores the various rules and regulations put in place by various government authorities to curb insider trading. Insider trading damages the reputation of the company as well as the stock markets. Insider trading can involve employees, directors, as well as the service providers of the company.
To have a fairness in the market is of importance so that the people can trust the markets and actively participate in them. The trust of the investors is violated by insider trading leading to various legal ramifications. For this reason, there are laws to maintain an even playing field. Investors and economy fall prey to this crime of insider trading. In this paper we examine he Various laws which govern insider trading as well as dwell in detail about when insider trading is legal and when it is illegal in the country with help of the current rules and regulations along with certain case laws.
Keywords: Insider Trading, Securities law, Rules and Regulations, unconscientious dealings.
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