Insider Trading Regulations And Enforcement: A Comprehensive Analysis Of Generally Available Information, Insider Relationships, Offences, And Adjudications

Dakshita Singh, FIMT, GGSIPU

ABSTRACT

This paper delves into various aspects of insider trading regulations in India, exploring the definition of generally available information and its applicability to stock exchange websites, social media, and research reports. It highlights SEBI's stance on social media as a less reliable source of information compared to mainstream media, shedding light on cases where information shared on platforms like WhatsApp was not considered generally available. The paper also examines the role of research analysts and the ambiguity surrounding whether their reports can be classified as generally available information.

Additionally, it discusses the liability of individuals connected with holding companies and those who influence insiders within a company, offering insights into relevant legal cases. Furthermore, the paper explores the offences related to insider trading and the adjudication process, emphasizing the factors considered during penalty determination.

Lastly, the paper speculates on potential developments in insider trading regulations, including the proposed controlling person liability and the implications it could have on companies and individuals involved in insider trading cases.