AI Summary of Scholarly Research

This page presents an AI-generated summary of a published research paper. The original authors did not write or review this article. [See full disclosure ↓]

SEBI insider trading rules improved, but implementation problems remained

Research area:business-management

What the study found

The paper finds that the SEBI (Prohibition of Insider Trading) Regulation, 2015 was a significant improvement over the 1992 regulation, but it still faced implementation problems. The authors say the framework continued to struggle to balance deterrence, investor protection, market integrity, and rapid technological change.

Why the authors say this matters

The study suggests the regulation matters because it sits at the center of efforts to protect investors and preserve market integrity in India's securities market. The authors conclude that the framework's limits in enforcement and institutional capacity remain important for controlling insider trading.

What the researchers tested

The paper is a critical analysis of the regulation over its first decade of operation, from 2015 to 2025. It examines enforcement data, landmark judicial precedents, and regulatory amendments, including changes related to unpublished price-sensitive information (UPSI), disclosure rules, and surveillance systems.

What worked and what didn't

The paper says the newer regulation introduced stronger features, including a definition of UPSI, increased disclosure rules, and improved surveillance systems. However, implementation issues still existed, and Supreme Court decisions such as Balram Garg and Abhijit Rajan raised the standard of evidence required by SEBI. The 2024 and 2025 amendments are described as attempts to close definitional gaps.

What to keep in mind

The summary provided is an abstract only, so detailed findings, data, and case analysis are not available here. The paper does not give a full account of all limitations beyond noting continuing implementation problems and institutional constraints.

Key points

  • The 2015 SEBI insider trading regulation is described as a major improvement over the 1992 rule.
  • Implementation problems remained despite new definitions, disclosure rules, and surveillance systems.
  • Supreme Court cases raised the evidence standard required by SEBI.
  • The 2024 and 2025 amendments are presented as efforts to close definitional gaps.
  • The paper says the framework still struggles to balance deterrence, investor protection, and market integrity.

Disclosure

Research title:
SEBI insider trading rules improved, but implementation problems remained
Authors:
Prabhat Deep, P. K. Das
Institutions:
Central University of South Bihar, Central University of South Bihar
Publication date:
2026-02-28
OpenAlex record:
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AI provenance: This post was generated by gpt-5.4-mini (OpenAI). The original authors did not write or review this post.