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Appropriate regulation is necessary to ensure the securities market operates fairly and equally, even while unethical practices like insider trading undermine the integrity of trading. Numerous frauds and scams over the nation has frequently exposed regulatory framework chaos the gaps in the legislation. In order to address these actions that attract investors losing faith and enthusiasm in the securities industry, the Securities Exchange Board of India (SEBI) has developed a number of guidelines and laws to prevent such wrongdoings. This essay aims to educate readers about insider trading and the detrimental effects it has on the markets. To this end, the author will utilize case studies in addition to the legal position for that specific matter. To preserve the authenticity of the market for securities It's critical that insider trading gets punished. There are strict restrictions in place to penalize players who engage in these kinds of activity since insider trading upsets market equilibrium and provides an unwarranted benefit for those engaging in insider trading. Insider trading and its methods were established by a number of legislations, and it has offered a range of sanctions to stop insider trading. In 1992, the SEBI released the SEBI (Prohibition of Insider Trading) Regulations, 1992 ("1992 regulations"), which have since been revoked. The "2015 regulations"--the Insider Trading) Regulations, 2015--have been implemented action to address the inadequacies of the prior regulations and to limit the danger of insider trading, an illicit practice employed by certain vested interests in the corporate world to satisfy their personal financial expectations by supplying data (price-sensitive, unpublished-private data) that have the potential to cause significant shift in the share value. Essentially, insider trading is the purchase and sale of shares based on significant and private knowledge that is not typically made public but is revealed by an insider with the malicious intent of making illicit riches.