Indiana Clauses Relating to Transactions with Insiders

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Multi-State
Control #:
US-P0613-2AM
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Word; 
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FAQ

If someone is caught in the act of insider trading, he can either be sent to prison, charged a fine, or both. ing to the SEC in the US, a conviction for insider trading may lead to a maximum fine of $5 million and up to 20 years of imprisonment.

An Insider who tips information to a person who then trades is subject to the same penalties as the tippee, even if the Insider did not trade and did not profit from the tippee's trading.

There are two types of insider trading, legal and illegal. In the illegal kind, one breaches the company's trust by trading based on the inside information while others remain ignorant. In legal cases, an insider buys or sells securities of their corporation based on the inside information.

There is no mandatory minimum for insider trading. The minimum sentence for insider trading is up to the discretion of the federal sentencing judge.

1[15G. Penalty for insider trading.-- If any insider who, shall be liable to a penalty 2[which shall not be less than ten lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of insider trading, whichever is higher].]

Penalty. Section 15-G9 of the Securities and Exchange Board of India Act, 1992 provides that any person violating these regulations shall be penalised with a fine not less than 10 lakhs which can be extended up to 25 crore rupees or three-times the profit made out from insider trading transaction, whichever is higher.

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Indiana Clauses Relating to Transactions with Insiders