Insider trading refers to the trading of shares on the stock exchanges with sensitive information, which is not yet published. The insiders include managers, directors, other employees, auditors, etc., who have a hold over sensitive information and accordingly buy or sell on the Stock Exchanges. For instance, if the sensitive information relates to likely high growth in profits of the company, then the insiders may buy the shares at a low price and when the information is published, the share price may shoot up considerably resulting in the insiders selling and making huge profits. Insider trading is restricted by SEBI. Thus, insider trading is considered illegal.