New Delhi, Oct. 21 -- India's markets regulator is tightening its grip on insider trading as illicit stock market gains surge, pushing companies to strengthen compliance and disclosure practices.

The Securities and Exchange Board of India last week ordered that unlawful gains of over Rs.173 crore be impounded after uncovering insider trading involving a Central Electricity Regulatory Commission (CERC) official and shares of Indian Energy Exchange Ltd (IEX).

That figure dwarfs earlier instances, such as the 2020 Bank of Rajasthan case, where insiders made illegal gains of Rs.95.77 lakh during the company's acquisition; the 2022 Lux Industries case involving Rs.2.94 crore from trades on financial results; and a 2024 case related to Infosy...