What Is Insider Trading and How does SEBI Deals with It?

Insider trading includes trading in a public company by someone who has confidential, price sensitive information, and who uses and deals with such information. Insider trading can either be illegal or legal depending on the knowledge, based on which the individual is trading. According to section 2(h)(ha) of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992[i] ‘price sensitive information’ means any information relating to present, future or even past, that has the potential to affect the prices of securities and value of the company.

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