Article Details
  • Published Online:
    October  2025
  • Product Name:
    The IUP Journal of Accounting Research & Audit Practices
  • Product Type:
    Article
  • Product Code:
    IJARAP101025
  • DOI:
    10.71329/IUPJARAP/2025.24.4.194-214
  • Author Name:
    Priyanka Ghosh and Ashwitha
  • Availability:
    YES
  • Subject/Domain:
    Finance
  • Download Format:
    PDF
  • Pages:
    194-214
Volume 24, Issue 4, October-December 2025
Insider Trading and Stock Price Volatility: Insights from Indian Corporate Cases
Abstract

The paper considers various cases of insider trading in India to analyze the impact of news about insider trading on stock prices. The cases of insider trading considered involve the following companies: Infosys, GIC, Aptech Ltd. and PC Jewellers. OLS market model under event study methodology was used to analyze the impact of insider trading on share prices. A high volatility in stock prices of the considered companies was observed. After the news of insider trading broke, the share price of GIC reduced by 1.40%, and that of Aptech Ltd. increased from 44 to 97 per share. The study found that news about insider trading had a negative impact on the share prices of Infosys, Zee Entertainment, PC Jewellers and GIC.

Introduction

Insider trading raises serious questions about investor trust, market fairness, and transparency. Insider trading incidents provide important insights on company governance and market efficiency, especially in developing nations like India, where legal frameworks are constantly evolving.