Strengthening Surveillance: SEBI’s Approach To Insider Trading In The Digital Era
- IJLLR Journal
- Mar 1
- 2 min read
Srilakshmi K, ISBR Law College affiliated to Karnataka State Law University
Harshitha J S, ISBR Law College affiliated to Karnataka State Law University
ABSTRACT
In a time when our choices are shaped by the posts we see on social media, and where a single tweet can influence financial markets, opportunities have emerged to exploit financial data shared online. Although the openness brought about by the dissemination of information on digital platforms has enabled societies to hold governments accountable, it has also heightened the risks of insider trading, especially in major developing nations like India. The media and entertainment channels we depend on for information and connection have turned into hotbeds for the swift spread of rumours and unverified claims, creating considerable challenges for maintaining the integrity of our markets. The rapidity and anonymity with which information circulates present significant obstacles for regulatory agencies like SEBI, which have historically depended on more methodical and regulated oversight. This raises an important question: Can India's regulatory framework evolve to meet the challenges posed by this digital wave, or will it continue to lag in identifying and addressing insider trading?
This article seeks to answer this question by critically examining India's current regulatory framework, with a particular emphasis on how well SEBI's current instruments monitor and identify insider trading that is made possible by digital platforms. It examines the difficulties presented by the flow of information across borders, the privacy of online communication, and the absence of real-time monitoring tools to keep up with the rumour’s quick spread. Additionally, the study will evaluate how technological advancements like blockchain and artificial intelligence might enhance regulatory monitoring and detection capacities. In order to better manage the changing threat of digital insider trading, the paper will propose ways to improve enforcement and modify India's regulatory frameworks through a qualitative examination of legal frameworks, case studies, and expert perspectives.
Keywords: Insider Trading, Digital Platforms, SEBI, Market Manipulation, Surveillance, Artificial Intelligence, Blockchain, Cross-border Jurisdiction.
