SEBI1 min read
Insider Trading
Trading in securities of a listed company based on UPSI by a connected person or an insider. Prohibited under SEBI (Prohibition of Insider Trading) Regulations, 2015. Maximum penalty: ₹25 crore or 3 times profit, whichever is higher.
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. What is Insider Trading in Indian corporate law?▼
Trading in securities of a listed company based on UPSI by a connected person or an insider. Prohibited under SEBI (Prohibition of Insider Trading) Regulations, 2015. Maximum penalty: ₹25 crore or 3 times profit, whichever is higher.
Q2. Why is Insider Trading important for compliance?▼
Insider Trading is regulated by the Securities and Exchange Board of India under applicable SEBI regulations. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Insider Trading?▼
Insider Trading is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with SEBI regulatory matters in India.
Contextual Analysis & Regulatory Updates🔗
Read our latest analysis and critical updates on corporate circulars related to SEBI:
IFSCA (Prohibition of Market Abuse in Securities Markets) Regulations, 2026: GIFT City Gets Its Own Insider Trading and Fraud Law
Published: 17 September 2026
SEBI Master Circular for Debenture Trustees 2026: Complete Guide to All 17 Chapters, Deadlines and Compliance Actions
Published: 28 September 2026
SEBI Board Meeting, September 24, 2026: New Portfolio Managers Regulations, Settlement Framework Overhaul, and 11 More Key Decisions
Published: 25 September 2026