Research Article
Intelligent System for the Detection of Insider Trading in Indian Stock Market
@INPROCEEDINGS{10.4108/eai.7-12-2021.2314574, author={Amosh Sapkota and Anand Kumar and Anjali Mathur}, title={Intelligent System for the Detection of Insider Trading in Indian Stock Market}, proceedings={Proceedings of the First International Conference on Combinatorial and Optimization, ICCAP 2021, December 7-8 2021, Chennai, India}, publisher={EAI}, proceedings_a={ICCAP}, year={2021}, month={12}, keywords={insider trading security market sebi corporate filing nse nifty 50 financial results machine learning deep learning}, doi={10.4108/eai.7-12-2021.2314574} }- Amosh Sapkota
Anand Kumar
Anjali Mathur
Year: 2021
Intelligent System for the Detection of Insider Trading in Indian Stock Market
ICCAP
EAI
DOI: 10.4108/eai.7-12-2021.2314574
Abstract
Insider trading is a pervasive stock market malpractice that has existed since the inception of the security market. Insider trading is notoriously difficult for regulators worldwide to crack down on. In our investigation, we proposed a methodology for detection of insider trading in Indian stock market. To start with, the insider trading cases that happened in the Indian financial exchange we collected corporate filing data from NSE website for each company of NIFTY 50, which has different columns related to price, action and person or organization doing that action from 1stJanuary to a day prior to the publicationof financial results of December quarter offiscal year 2020-21. On doing as such, we have seen that enormous exchange have been done prior to publicationof financial results in some companies, which can be suspected as insider trading. At that point, themachine learning algorithms were utilized for preparing and for foreseeing Insider trading. Then, the algorithms were used for training and for predicting insider trading. Finally, their performance wasmeasured, compared and accuracy was calculated.Experiments revealed that the recommended method successfully achieved the best accuracy. This could be amazingly helpful for detecting insider trading in future, not only in Indian stock market, but also in other stock exchanges.
