Insider trading is the buying or selling of a company's securities by someone with access to material, non-public information (UPSI) about that company. It is illegal in India under the SEBI (PIT) Regulations, 2015.
What is UPSI?
Unpublished Price Sensitive Information includes: financial results before publication, dividends, mergers/acquisitions, board changes, major contracts, regulatory actions — any information that if published would materially affect the share price.
Who is an Insider?
- Promoters, directors, key management personnel
- Employees with access to UPSI
- Connected persons (relatives, associates) who receive UPSI
Penalties: Up to ₹25 crore or 3× profits, whichever is higher. Criminal prosecution: up to 10 years imprisonment.