Insider trading is defined as a process whereby individuals who, due to their employment, have access to information that is otherwise not generally known but may be essential for making investment decisions, trade the securities of a company.

It is known as insider trading, and the Securities and Exchange Board of India strongly discourages it in order to encourage fair trading in the market for the benefit of the average investor. Insiders include senior employees or executives who have access to strategic information about the company.

Insider trading is unfair conduct in which the lack of critical insider non-public information places the other stockholders at a significant disadvantage. But in other circumstances, if the knowledge has been made public and is available to all interested investors, that will not constitute illegal insider trading.