A Study on the Securities and Exchange Board of India (SEBI) and the Evolving Legal Framework against Insider Trading and Market Manipulation in India

This paper discusses the changing regulatory and jurisprudential landscape of insider trading in India, with a core focus on the metamorphosis of SEBI's enforcement paradigm under the SEBI (Prohibition of Insider Trading) Regulations, 2015. Insider trading and market manipulation are perceived as two of the most critical threats to the stability, fairness, and credibility of the Indian securities market. The regulatory architecture anchored by the Securities and Exchange Board of India has been designed to protect investor interest and ensure the integrity of the market by combining statutory, regulatory, and enforcement mechanisms. The twin key frameworks-the SEBI (Prohibition of Insider Trading) Regulations, 2015 (the PIT Regulations), and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (the PFUTP Regulations)-form the central pillars of India's battle against information-based and conduct based market abuse. The objectives of the study will be to examine the basic regulatory structure of the Indian securities market and to analyze the evolution, scope, and interrelationship of the PIT Regulations, 2015, and the PFUTP Regulations, 2003. Based on the foundational structure of the Indian securities market, this discussion emphasizes how SEBI is constantly narrowing down the meaning of "insiders" and broadening the ambit of Unpublished Price-Sensitive Information and enhancing corporate obligations related to governance. More contemporary changes, through defined terms of "connected persons" and "immediate relatives," reflect an increased focus on networks beyond relational and access networks that are linked to flows of information. Concomitant with increased market abuse complexity, the interplay of SEBI guidelines and judicial intervention is strengthening the Indian securities market.