The term “Insider Trading” is related to which of the following?

Correct option is C

The correct answer is (c) Stock market
Explanation:
• Insider Trading refers to the illegal practice of trading on the stock market to one's own advantage through having access to confidential or non-public information.
• It involves buying or selling a public company's stock or other securities by individuals with access to non-public, price-sensitive information about the company.
• This practice is considered a serious financial crime because it creates an unfair advantage for "insiders" over the general investing public.
• In India, the Securities and Exchange Board of India (SEBI) is the regulatory body that monitors and penalizes cases of insider trading.
• Strict regulations are in place to ensure market transparency and to protect the interests of retail investors.
Information Booster:
• An "insider" can include company directors, officials, or even external parties like auditors and legal consultants who have access to sensitive data.
• Penalties for insider trading in India can include heavy fines and imprisonment under the SEBI (Prohibition of Insider Trading) Regulations.
Additional Knowledge:
(a) Hawala scandal (Option a)
• Hawala is an informal, underground method of transferring money without the actual movement of currency, often used for money laundering or tax evasion outside the banking system.
(d) Tax assessment (Option d)
• This is the process carried out by the Income Tax Department to calculate the tax liability of an individual or a business entity based on their reported income.