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Insider Trading?
Last week, market regulator Sebi came out with a new set of rules aimed at making insider trading tougher than before. As the term suggests, insider trading refers to the act of buying or selling the stock of a company by someone who has access to news from the inside of the company which, in most cases, is not available to the general public. Although insider trading could be legal or illegal, the term itself has a negative connotation. Regulators around the world have put in place strict guidelines about such trading. So, if the trading by an insider is done while staying within the limits of the rules, it is perfectly clean. Several traders and investors look at insider trading disclosures to gain vital information about the happenings within a company.
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