Government reports over 6,700 stock trading fraud cases in 5 years, ₹1,083 crore recovered

Insider trading and market manipulation are serious offenses that can undermine the integrity of financial markets. To combat these illegal activities, regulators have put in place surveillance mechanisms to detect and prevent such practices.

One of the key tools used by regulators to monitor trading activities is the implementation of sophisticated surveillance technologies. These systems are designed to analyze large volumes of trading data in real-time, looking for patterns or anomalies that may indicate potential instances of insider trading or market manipulation. By using algorithms and machine learning techniques, regulators can quickly identify suspicious trading behavior and take appropriate action to investigate further.

In addition to surveillance mechanisms, regulators also play a crucial role in educating investors about the risks and consequences of engaging in illegal trading activities. Investor education programs are designed to raise awareness about the laws and regulations governing financial markets, as well as the importance of maintaining fair and orderly trading practices. By providing investors with the knowledge and resources they need to make informed decisions, regulators can help prevent insider trading and market manipulation from occurring in the first place.

Furthermore, regulators work closely with market participants, such as brokers, exchanges, and trading firms, to ensure compliance with regulations and promote transparency in the trading process. By fostering a culture of compliance and integrity within the financial industry, regulators can help build trust and confidence in the markets, ultimately benefiting investors and the economy as a whole.

Overall, the fight against insider trading and market manipulation requires a multi-faceted approach that combines surveillance mechanisms, investor education programs, and collaboration with market participants. By staying vigilant and proactive, regulators can help deter illegal trading activities and uphold the integrity of financial markets for the benefit of all stakeholders.