Insider trading is prohibited and is considered an offence vide SEBI (Insider Trading) Regulations, 1992.
The definitions of some of the important terms are given below :
‘Dealing in securities’ means an act of subscribing, buying, selling or agreeing to subscribe, buy, sell or deal in any securities by any person either as principal or agent.
‘Insider’ means any person who, is or was connected with the company or is deemed to have been connected with the company, and who is reasonably expected to have access to unpublished price sensitive information in respect of securities of a company, or who has received or has had access to such unpublished price sensitive information.… Read the rest