What are the restrictions on communication and trading by insiders?

Restrictions on Communication and Trading by Insiders Chapter II of the SEBI (Prohibition of Insider Trading) Regulation, 2015 imposes restrictions on Communication and Trading by Insiders. Communication or procurement of Unpublished Price Sensitive Information (UPSI) is prohibited except where such communication is in furtherance of legitimate purposes, performance of duties or discharge of legal obligations. Multiple restrictions have been placed, i.e.: Prohibition on communication of unpublished price sensitive information: Sub-section (1) of Section 3 prohibits any insider from communicating, providing or allowing any access to any UPSI, relating to a company or securities listed or proposed to be listed, to any person including other insiders. Prohibition on procurement of unpublished price sensitive information: Sub-section (2) of Section 3 prohibits from procurement or communication by any insider of UPSI, relating to a company or securities listed or proposed to be listed. Prohibition on trading in securities when in possession of unpublished price sensitive information: The 1992 Regulations prohibited 'dealing' in securities when in possession of UPSI, amongst others; the expression 'dealing' has been replaced with 'trading' in securities. Under the Regulations, the definition of 'trading' has been kept wide. It must be noted that the 1992 Regulations placed no restrictions on the 'procurement' of unpublished price sensitive information by other persons.