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ARTICLE · 10 APRIL 2025

Insider Trading: Regulation & Global Comparison

Insider trading, the act of leveraging unpublished price-sensitive information ("UPSI") for financial gain in the securities market has long been a contentious issue in corporate governance and financial law.

IndiaCorporate/Commercial Law

Introduction

Insider trading, the act of leveraging unpublished price-sensitive information ("UPSI") for financial gain in the securities market has long been a contentious issue in corporate governance and financial law. Defined broadly, it encompasses trading conducted by individuals privy to non-public information, often resulting in significant unfair advantages. Such activities undermine market fairness and erode investor confidence, central pillars of robust financial systems.

The significance of regulating insider trading transcends legal compliance; it is deeply tied to fostering ethical practices and maintaining market integrity. Markets thrive on transparency and trust, yet insider trading introduces an asymmetry of information that disproportionately benefits insiders over regular investors. This erosion of trust can disrupt market operations, leading to broader economic repercussions.

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