Insider trading has always attracted controversy with massive frauds and scandals making headlines and damaging reputations. It is a practice that allows a relatively privileged minority, to use privileged information for unjust enrichment. It reveals price sensitive information i.e. any information, which relates directly or indirectly to a company and which, if published, is likely to materially affect the price of its securities.

In the era of globalization and economic liberalization the buzz phrase corporate governance has succeeded in attracting a good deal of public interest. It is the result of well-publicized corporate scandals in the last decade reiterating the importance of corporate governance. It has become a topic of debate among researchers, academicians, regulators, corporate heavyweights and the legal fraternity.

Class action, in law, a device that permits one or more persons to sue or be sued as representative of a large group of people interested in the matter at issue. A class action is a legal procedure used to prosecute efficiently a lawsuit in which large numbers of people have been injured by a common act or set of actions. In a class case, one or two named plaintiffs stand in for the entire group of similarly aggrieved persons during the course of the litigation.

In business terms takeover means purchase of one company by another company. Usually mergers and takeovers happen as a part of strategies for expansion of business or growth of corporations. The term "Mergers and Takeovers" is often used as an interchangeable term. Mergers refer to deals where two or more companies decide voluntarily on stakes in each other's businesses, whereas an acquisition is the straightforward purchase of a "target" company.