All You Need to Know About SEBI Inside Trading Regulation

When corporate insiders like officers, directors, and employees, auditors, appointed counsels, trade stock in their own companies, while in ownership of the material, nonpublic information about the Company/or its shares, they indulge themselves in “Insider Trading”. Insider trading is primarily the act of dealing in securities with the advantage of having access to unpublished information which when published would impact the price of securities in the market. On the other hand, insider trading can be illegal or legal depending on when the insider makes the trade. It is unlawful when the material information is still not disclosed and is non-public.