INSIDER TRADING REGULATIONS IN INDIA: AN ANALYSIS OF SEBI's ENFORCEMENT FRAMEWORK

Insider trading is a grave issue that affects the honesty and reliability of securities markets. The establishment of Securities and Exchange Board of India (SEBI) and the enactment of the SEBI (Prohibition of Insider Trading) Regulations, 2015 have significantly changed the insider trading regulatory framework in India. The regulations are designed to build a preventive and enforcement, oriented mechanism facilitating transparency, accountability, and market integrity. This article critically reviews the regulation of insider trading in India based on an examination of the enforcement framework developed by SEBI. It also reviews the legal framework of the 2015 Regulations, the investigative and enforcement powers of SEBI, and the judicial oversight role in shaping the enforcement standards. This article submits that although India has developed a highly sophisticated legal framework to regulate insider trading, the challenges of detection, evidentiary complexity, institutional capacity, and cross-border transactions continue to impact the effectiveness of the enforcement of the legal framework. Improving enforcement capabilities and a culture of compliance at the corporate level are essential to the success of the enforcement framework of SEBI