A Decade of SEBI Prohibition of Insider Trading Regulation 2015, Reform: Uncertainty and Capacity

Abstract This research paper is a critical analysis of the SEBI (Prohibition of Insider Trading) Regulation, 2015. Over a decade of its operation between 2015 and 2025. The paper examines the impact of the regulation that repealed and replaced the 1992 regulation which led to the unprecedented growth and metamorphical change of the securities market in India. The study analyses the conflict between the objectives of the regulation and the realities of its implementation through a thorough analysis of enforcement data, landmark judicial precedents, and regulatory amendments. This decade has seen a six-fold increase in the market capitalization and evolutionary change in the dynamics of trading in the Indian securities market. However, even with the advanced structure of the new regulation such as the definition of unpublished price-sensitive information (UPSI), increased disclosure rules, and improved surveillance systems, the implementation issues still exist. The decisions of cases like Balram Garg and Abhijit Rajan, which have been decided by the Supreme Court, have significantly raised the standard of evidence required by SEBI, and the 2024, 2025 amendment to the regulation can be seen as a continuation of the attempts to close the definitional gaps. This paper states that even though the 2015 regulation is a significant improvement over 1992 regulation, the regulatory framework still struggles to find a balance between deterrence and investor protection, market integrity in the face of rapid technological change, and the institutional capacity to effectively curb insider trading. Keywords: SEBI, Insider Trading, Securities market, Insider Trading Prohibition, Insider trading Regulation.