What is Insider Trading?

Insider trading refers to transactions in securities of some company executed by a company insider. When sensitive information is willingly induced in the market to influence the price of a scrip for personal profits, it is called Insider trading.

In most cases, an insider is someone from inside the company who knows financial information about the company before it becomes public. Insiders may include company officers and other senior executives.

Even though, most listed companies warn their employees about insider trading, it is still in practice. SEBI has strict rules against the practice of Insider Trading and it is a prosecutable offenses under the relevant law.
Insider Trading

Insider trading is illegal in India and many other countries.

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