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on behalf of any other person, deals in securities of a body corporate listed on any stock exchange on the basis of any unpublished price-sensitive information; or communicates any unpublished price-sensitive information to any person, with or without his request for such information except as required in the ordinary course of business or under any law; or counsels, or procures for any other person to deal in any securities of any body corporate on the basis of unpublished price-sensitive information, Shall be liable to a penalty which shall not be less than ₹ 10 lakh but which may extend to ₹ 25 crore or three times the amount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

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