The capital showcase may be a bridge as a contact between financial specialists and companies or

government teach through exchanging long-term money related disobedient such as bonds, stocks,

and others (Martalena, 2019). The capital showcase makes the government exceptionally curious

about the improvement and advance of the capital market, since it has the opportunity to raise

reserves enormously so that it can be utilized to extend the amount of advancement exercises ,

various efforts are made by the government to create an ideal capital market for the community, so

that people are interested in investing in the capital market by buying a number of securities from

companies or institutions. The ownership of securities of companies by the community turns out to

professions related to securities. The capital market is a place to find funds used by both companies

and also an alternative investment vehicle for the community. Capital market in the classical

definition can be interpreted as a field of business trading securities such as stock certificates, stocks,

bonds securities in general (Gisymar, 1999; Jonkarlo et al., 2022).

In capital market activities, there is a principle of openness and information or called disclosure

detailple, that almost all investments have risks, so there will be the possibility of investors

experiencing losses, in this capital market activity, trust is the main thing in the implementation of

the capital market, namely public confidence in the value of shares. In capital market activities, there

must be protection by law to ensure the certainty of the principle of openness. The principle of

openness is present in securities transactions involving all aspects of finance, management, law and

Trading is a transaction process that takes place in the financial market where the working

system is often to sell and buy assets in a short time. This is when traders get a profit, which is to sell

the asset at a higher price than before buying it. The purpose of trading is to collect profits from the

difference in buying and selling prices, in general, traders take advantage of trend changing moments

in stocks whose prices vary greatly to make profits. Trading activities can be done through

intermediaries or commonly called brokers. The broker who will be the liaison between traders and

the market can also be an advisor on the current state of the market to help traders with making

decisions. Insider Trading is an illegal activity or practice based on electronic transactions. Securities

trading transactions conducted by corporate insiders, companies, their management, directors or

majority shareholders who hold private information. The Security Exchange Commission (SEC)

95 to 99 and Article 104. That is: (Indonesia, 1995)

prohibited from buying or selling securities. The issuer or public company in question or other

companies that conduct transactions with the issuer or public company concerned.

person unlawfully and subsequently obtains it is subject to the same prohibition as applicable to

company, except if:

prohibited securities transactions as referred to in Article 95 and Article 96.

article 92, article 93, article 95, article 96, article 97 paragraph (1), and Article 98 shall be

threatened with imprisonment of 10 (ten) years and a maximum fine of Rp.15,000,000,000.00

(Fifteen billion rupiah).

The method of approach in this article research is normative juridical or normative law, which

cases that have been resolved is expected to increase investors' confidence in investing in the capital

market. Insider trading settings serve to create confidence in investors. Legal provisions and law

enforcement regarding Insider Trading apply the enforcement of sanctions as a legal form as

stipulated in the capital market law (Christensen et al., 2016; Nefi, 2021).

In the Capital Market Law Number 8 of 1995 concerning Capital Market, the practice of Insider

Trading occurs because insiders trade using inside information that has not been submitted to the

public (non-public information material). This means that Insider Trading has a stock price. A better

Insider position compared to other Investors in stock trading transactions can lead to unfair stock

trading, because the practice of Insider Trading creates distortions in stock prices, therefore the stock

price is not a reflection of efficient market information.

criminals. Insider Exchanging within the capital showcase is contained within the Capital Advertise

Law No. 8 of 1995 concerning Capital Advertise which disallows insiders from an guarantor or open

company that has insider data to purchase or offer securities of guarantors or companies that make

exchanges with backers where they work.

Insiders in open companies or backers are denied from affecting others or giving data to other

parties who sensibly anticipate to utilize such data to purchase or offer securities of open companies

or backers submitted to them. The forbiddance of the utilize of insider data is more critical since this

activity is an out of line activity against others. Who knew completely no such data. Within the utilize

of insider data by Insiders or other parties who have connections with insiders can cause money

related advantage to the party by causing misfortunes to financial specialists.

capability. So, broadly speaking, diamond fraud is a refinement of the fraud model initiated by Cressy.

There are also elements of fraud diamond theory, namely: pressure, opportunity, rationalization and

capability.

The practice of insider trading can occur when an Insider conducts a trading action using

material fact information that is not yet known to the public, which is feared to affect stock prices.

Based on article 95 of the UUPM, in fact, several elements can be derived that Insider Traading is said

to occur if it has fulfilled three elements, namely: (Dimyati, 2014) 1. There are insiders, 2. The

information obtained from the insider has a material nature and has never been published to the

moldal showcase includes capital showcase players, particularly guarantors, speculators, and capital

advertise supporting teach where these parties are overwhelmed by legal subjects within the shape

of legal entities within the shape of constrained risk companies. In ensuring Investors within the

Capital Market Law Number 8 of 1995, must apply the rule of openness to supply assurance to

Investors from wrongdoing within the capital showcase, one illustration is Insider Exchanging and

guarantors who will offer securities in open offerings must be able to supply openings for Financial

specialists to examined the outline with respect to the securities to be issued, at the time of booking

or some time recently the booking is made.

Within the conclusion, after Bapepam-LK paid consideration to the completeness and clarity of

the issuer's archives to conduct a open advertising in arrange to meet the principle of openness within

exchanges within the capital showcase.

Without numerous speculators, capital advertise exercises will be exceptionally powerless, and

capital showcase capacities will not create. The rule of openness (full revelation) is one of the

endeavors to ensure Speculators. Such security endeavors can be realized in the event that the usage

of data straightforwardness or full disclousure commitments containing fabric actualities in each

movement that takes put within the capital advertise. Hence, the realization of a capital showcase

condition that's reasonable, productive, efficient, and can be ensured by the interface of the open or

speculators from activities that can harm the community and speculators. This can be in agreement

with the reason of the rule of openness itself and makes a difference in setting exact advertise costs

which are all pointed at the advantage of the open or Speculators and potential Speculators (Nefi,

2021).