India's Battle Against Securities Fraud: Lessons and Road Ahead

Recently, SEBI and Indian courts have addressed significant securities scams, including the
Sadhna Broadcast YouTube pump-and-dump scheme, Jane Street index manipulation,
IndusInd Bank insider trading, and Ketan Parekh’s front-running operation, illustrating many
manifestations of market abuse. These instances underscore SEBI’s heightened scrutiny of
insider trading, market manipulation, and fraudulent trading syndicates inside India’s
securities market. From this it is evident that Indian financial markets are vulnerable to
securities fraud, which threatens their integrity and stability. Despite the enormous
improvements that have been made to the regulatory structure and enforcement systems,
securities fraud continues to be a chronic concern for India’s financial markets.
Insider trading one among the same continues to be one of the most pervasive and
challenging types of market abuse. This article analyses the securities fraud in India, focusing
particularly on insider trading as delineated by the SEBI (Prohibition of Insider Trading)
Regulations, 2015. It emphasises the essential elements of insider trading, namely
unpublished price-sensitive information, affiliated individuals, and trading behaviors. The
research delves into significant instances, the regulatory actions taken by the SEBI and the
efficacy of enforcement measures. The purpose of the study is to determine the gaps in the
current legislation to maintain the market integrity in India. Further the research concludes by
making recommendations to curb the practice.