Statutory Meaning & Definition
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.
Frequently Asked Questions (FAQs)
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.
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.
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 Circulars
Recent analysis and regulatory updates 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 FATCA/CRS Reporting Revised Under Income-tax Act, 2025: What Intermediaries Must Change Now
Published: 11 November 2026
SEBI Settlement Regulations 2026 in Force from 7 November: FAQs, Calculator and Online Filing Now Live
Published: 6 November 2026
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