With respect to insider trading, which of the following observations is/are correct?

An insider can be anyone who has been associated with the company in some way during the six months preceding the insider trade.

Insider trading is illegal and can lead to severe penalties for those involved.

Insider trading regulations are enforced by government agencies to maintain fair market practices.

Select the correct option from the codes given below:

Question

An insider can be anyone who has been associated with the company in some way during the six months preceding the insider trade. Correct: The Securities and Exchange Board of India (SEBI) defines an ‘insider’ as someone who has access to price-sensitive information about a particular company's shares or securities. An insider can be anyone who has been associated with the company in some way during the six months preceding the insider trade.
Insider trading is illegal and can lead to severe penalties for those involved. Correct: Insider trading involves trading a public company's stock based on non-public, material information, which is prohibited by law. Violators can face heavy fines and imprisonment.
Insider trading regulations are enforced by government agencies to maintain fair market practices. Correct: Regulatory bodies like the Securities and Exchange Commission (SEC) in the U.S. and the Securities and Exchange Board of India (SEBI) oversee compliance with insider trading laws to ensure market integrity and protect investors.

GKToday Admin · Accepted Answer

All three

An insider can be anyone who has been associated with the company in some way during the six months preceding the insider trade. Correct: The Securities and Exchange Board of India (SEBI) defines an ‘insider’ as someone who has access to price-sensitive information about a particular company's shares or securities. An insider can be anyone who has been associated with the company in some way during the six months preceding the insider trade.
Insider trading is illegal and can lead to severe penalties for those involved. Correct: Insider trading involves trading a public company's stock based on non-public, material information, which is prohibited by law. Violators can face heavy fines and imprisonment.
Insider trading regulations are enforced by government agencies to maintain fair market practices. Correct: Regulatory bodies like the Securities and Exchange Commission (SEC) in the U.S. and the Securities and Exchange Board of India (SEBI) oversee compliance with insider trading laws to ensure market integrity and protect investors.

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