TABLE OF CONTENTS RESEARCH METHODOLOGY; 1. INTRODUCTION; 2. WHY INSIDER TRADING IS CONSIDERED BAD?; • The Argument for Regulation; -Insider trading harms investors and thus undermines investor confidence in the securities markets ; -Insider trading amounts to theft of property belonging to the corporation or investors; •Is "Insider Trading" always bad? Or whether there is any good aspect of Insider Trading?; • Effect of Insider Trading on the Price of Securities; • Insider Trading as an Efficient Compensation Scheme; • Insider Trading And Its Affects On The Securities Market; • Impact Of Insider Trading On Retail Investors And Analysis The Position Of Retail Investors & Institutional Investors In 'Insider Trading Cases; • What is prohibited under the Insider Trading?; • How does insider trading work?; • What is the basis of criminalising Insider Trading?; 3. WHY IS IT SO NECESSARY TO KEEP PRICE SENSITIVE INFORMATION UNDISCLOSED?; • If publication might affect the outcome or normal proceeding of current negotiations; • If decisions made by the board of a business have yet to be approved by its supervisory board or similar organ; 4. LEGAL ASPECT OF INSIDER TRADING; • What is INSIDER TRADING?; • Who is an "Insider"?; • Price Sensitive Information; • Fiduciary Duties of Directors and other Insiders; • Powers of SEBI in case of violations; 5. PRESENT REMEDIES IN THE SEBI ACT AND REQUIREMENTS; • Need for civil remedies for the victim; • What are the remedies available to the person affected by insider trading in USA?; 6. INSIDER TRADING IN UNITED STATES; • The Classical Theory [Abstain Or Disclose Theory]; • The Misappropriation Theory; • The Possession/Or Use Theory; 7. LAWS RELATING TO INSIDER TRADING IN UNITED KINGDOM; • Part V of Criminal Justice act 1993; • Person And Transaction On Whom The Act Applies; • Offences; • Defences; • Financial Services and Market act 2000; • Criminal Justice Act 1993 v. Financial Services and Markets Act 2000; • Legal Mechanisms In US, UK And India; 8. WHAT IS THE ROLE OF MENSREA FOR AN ACT TO I BE AN OFFENCE OF INSIDER TRADING?; • USA; • UK; • INDIA; . 9. WHAT IS THE LOCUS STANDI IN INSIDER TRADING CASES? AND WHO SHOULD BE THE ELIGIBLE CLAIMANT IN SUCH CASES?; • A The privity traders approach • The contemporaneous traders approach; 10. INSIDER TRADING IN REFERENCE TO CORPORATE GOVERNANCE; • Corporate Governance; • Officer, director and substantial shareholder to disclose their holding on certain events or at certain intervals; • Restrict trading-by insiders within-a certain period of time i.e. before corporate announcements, buybacks etc. are made; CONCLUSION & SUGGESTION; BIBLIOGRAPHY.