Insider trading (or insider dealing) is the trading of shares or securities of a listed company (public company) by someone who has non-public, material and unpublished price sensitive information that can affect the stock price. In India, it is a malpractice that exists in the market. The use of unpublished price sensitive information can impact the decision of an investor to buy or sell shares or securities. When the insiders of the company, eg., key employees or executives having access to strategic information of the company, use the same for share trading, we call it Insider trading. 

SEBI (The Securities and Exchange Board of India) considers it as an unfair practice and discourages it.