What are the penalties/punishments for the following ? Penalty for insider trading under Section 15G of SEBI Act, 1992.
CS Professional · Resolution of Corporate Disputes, Non-Compliances & Remedies · PYQS · June 2023
What are the penalties/punishments for the following ? Penalty for insider trading under Section 15G of SEBI Act, 1992.
Answer & Explanation:
Penalty for insider trading under Section 15G of SEBI Act, 1992: If any insider who: either on his own behalf or on behalf of any other person, deals in securities of a body corporate listed on any stock exchange on the basis of any unpublished price-sensitive information; or communicates any unpublished price-sensitive information to any person, with or without his request for such information except as required in the ordinary course of business or under any law; or counsels, or procures for any other person to deal in any securities of any body corporate on the basis of unpublished price-sensitive information, Shall be liable to a penalty which shall not be less than ₹ 10 lakh but which may extend to ₹ 25 crore or three times the amount of profits made out of insider trading , whichever is higher.
Topics: SEBI Act
Related Questions in this Topic
- Differentiate between Punishment for False Statement and Punishment for False Evidence under the Companies Act, 2013.
- Mr. P who was a Managing Director of XYZ Ltd, was terminated from the position of Managing Director by virtue of an orde...
- Amit Sinha, commonly known as Sethji, has been accused of certain offenses under the SEBI Act, 1992. SEBI directed him t...
- State the punishment prescribed under Companies Act, 2013 for the following: (iv) Improper use of words "Limited" or "Pr...
- State the punishment prescribed under Companies Act, 2013 for the following: (iii) Punishment for wrongful withholding o...