An Analysis of Insider Trading in Companies in India and Its Effects

Insider trading is malpractice of those who are directly related to a company or body corporate or has any relation with the company. These persons use their position to get price sensitive information related to value of shares etc. which is unpublished. In simple words the term Insider
trading is about trading with the use of inside information i.e., information that has not yet been disclosed to the public. However, insider trading is divided into two limbs as legal and illegal. Legal Insider trading is done mainly by corporate insiders, who can be classified as officers,
directors, and employees buy and sell stocks in their own companies. But we are more concerned with the illegal aspect of insider trading like secretive information is disclosed or leaked out without concerning for the needs of the investor.