Insider Trading & PIT Disclosures

PIT disclosures are filings under SEBI's Prohibition of Insider Trading (PIT) Regulations, 2015, reporting trades that insiders — promoters, directors and designated employees — make in their own company's shares. These are the legal, disclosed kind of insider trades, distinct from unlawful trading on unpublished price-sensitive information.

The regulations work on two tracks. Prevention: insiders cannot trade while in possession of unpublished price-sensitive information, and companies close the 'trading window' around results and major events. Transparency: trades by insiders above monetary thresholds must be disclosed to the exchanges within days, creating a public record of insider buying and selling.

Investors track these filings because insiders know the business best. Sustained promoter or senior-management buying with their own money is one of the more respected bullish signals; heavy selling is more ambiguous (tax, diversification, personal needs) but persistent distribution across several insiders is hard to read positively.

Look at the pattern, not the single trade: who traded, how large relative to their existing holding, at what price, and whether several insiders acted in the same direction in the same period.

How stocks tend to react

Markets generally treat disclosed insider buying as a positive signal and clusters of insider selling as a caution flag, though single small trades rarely move prices. The signal strengthens when trades are large relative to the insider's holding or coincide with other filings such as results or pledges.

MarketPing measures this instead of guessing: every analysed announcement carries the stock's actual price reaction across 14 horizons, and the Reaction Lab aggregates how each category of announcement has historically moved stocks.

Related terms

Educational content, not investment advice. Regulations and tax rules change — verify current rules before acting.