摘要：Efficient market is good for the economy from investment point of view, it boost confidence of the investors and also help in the price discovery of the assets. On the other hand, prevalent of illegal insider trading cause loss of faith of the investors and is detrimental to the interest of the market. Despite strict regulation, illegal Insider trading is prevalent all over the world, in all size of companies and in all types of instruments like equity, debt, mutual funds, derivatives, IPO etc. Regulators find it difficult to curb it as the line between legal and illegal insider trading is very thin . Insider trading is still rampant in India and cases of insider trading have increased in recent past. This paper comprehensively deals with the different implications of the insider trading as well as the efficacy of the existing regulatory mechanism in the shape of SEBI (Prevention of Insider Trading) Regulation Act, 1992 to deal with this problem.
