Insider Trading means Buying or Selling the securities from insider to benefit from insider information OR Give insider information to publicly trader firm, To known person for Benefits. AS per sebi inside trading is prohibited by Law.
Who Is Insider?
This person is very important for company to keep secret inside dealing & inside information. for example orders, bonus, right issues. this person is connected to company.
How inside Traders Make Profits?
He leaks information about company which affect company share price in future time.
Violation of Provisions Relating to Inside Trading.
Any Insider, who deals in securities in contravention of the provision of regulations 3 or 3A be guilty of inside Trading.
Note: There are consistently between 600 to 700 SEC insider trading action every year.