International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
Call for Papers | Fully Refereed | Open Access | Double Blind Peer Reviewed

ISSN: 2319-7064

Downloads: 9 | Views: 118 | Weekly Hits: ⮙1 | Monthly Hits: ⮙2

Informative Article | Law | India | Volume 12 Issue 7, July 2023

How Insider Trading Affects Corporate Law

Bahitra Basu

Abstract: Due to its effects on corporate law and market integrity, insider trading is a concept that has attracted a lot of attention recently. The act of purchasing or selling shares by those who have access to information that is not generally known to the public gives them an unfair edge over other investors. Insider trading has far - reaching repercussions, impacting not just the individuals engaged but also the level of trust and openness in the corporate sector. Insider trading is the act of someone who, for whatever reason, possesses non - public confidential knowledge about the shares of a publicly traded corporation, trading in those shares. Depending on the time the insider trades, insider trading may be either lawful or criminal. Because of the serious consequences of this type of insider trading and the continued confidentiality of critical information, it is unlawful. India's 1992 SEBI Act regulates insider trading. Anyone found guilty of insider trading faces a maximum sentence of five years in prison and a fine of between Rs.5 lakh and Rs.25 crores, or three times the profit made, whichever amount is larger. The regulations governing these trades and the degree of compliance vary greatly from one nation to another.

Keywords: Insider Trading, Corporate Law

Edition: Volume 12 Issue 7, July 2023,

Pages: 37 - 39

How to Download this Article?

Type Your Email Address below to Receive the Article PDF Link

Verification Code will appear in 2 Seconds ... Wait