July 4, 2024
Property and Financial Crimes

What is the penalty for Insider Trading?



The SEBI (Prohibition of Insider Trading ) Regulations of 2015 defines “unpublished price sensitive information” as any information, relating to a company or its securities, and shall, ordinarily including but not restricted to, information relating to the following: –
1. financial results;
2. dividends;
3. change in capital structure;
4. mergers, de-mergers, acquisitions, delisting, disposals and expansion of business
and such other transactions;
5. changes in key managerial personnel; and
6. material events in accordance with the listing agreement.

Regulation 15G deals with the Penalty for insider trading.
*10 lakhs up to 25 crores; or
*3 times the profit made; or
*Whichever is higher

Ft. Shobika. B, 4th Year student of B.Com, LLB (Hons), Faculty of Law, SRM Institute of Science and Technology, Kattankulathur.
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DISCLAIMER: This video is not meant for advisory/recommendation purposes. The contents provided herein are not to be taken as professional legal advice/opinion. To be prudent, seek legal advice from a licensed legal practitioner.
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