Trading assets such as stocks, bonds, and stock options on the basis of knowledge that is not yet accessible to the general public is an example of illegal insider trading. Examples of insider trading include a top executive of a firm buying a significant number of shares in the same company after learning that the stock price is going up before the information is made public. This is an example of what is known as "buying the rumor and selling the news." Due to the fact that this action is seen as unfair to investors who do not have access to inside knowledge on a firm, it is first and foremost an act of malpractice as well as a criminal crime. The fact that it does not target specific individuals as its victims distinguishes it significantly from other types of fraudulent investment schemes. When it comes to investing, it is all about finding ways to obtain an unfair edge by utilizing the information that is accessible. As a result, rules and federal statutes are in place in nations to investigate and prosecute crimes related to securities fraud. In this instance, the research paper takes a comparative approach to discussing the rules and regulations governing insider trading in India and the United States.