Legal Services for Insider Trading
Affordable legal solutions from senior lawyers. Full litigation, documentation and support
Guaranteed satisfaction or your money back
146+ Lawyers are online
+ 15 ongoing calls
Process
Fill Out the Form
Schedule an Appointment
Make Payment
Lawyer Will Call You
Know about Company registration in 60 sec
Get Started
Process
Fill Out the Form
Schedule an Appointment
Make Payment
Lawyer Will Call You
1 Lakh+
Businesses registered
5 Lakhs+
Happy customers
India’s highest-rated
legal tax and compliance platform.
.png){kind=small}
4.4/5
13k+ Happy Reviews
Excellent service and support. Vakil Search Team is very supportive and professional. I Really appreciate the service and support from the team.
Rachna Pathania
Founder & CEO of SchnellTek Software Pvt. Ltd.
At Zolvit, our legal team provides specialised services for insider trading cases, offering expert legal support to navigate the complexities of securities law and regulatory compliance. Whether you are facing allegations of insider trading, need assistance with regulatory investigations, or require counsel on compliance matters, we offer comprehensive legal assistance to protect your rights and interests.
Insider trading involves the buying or selling of securities based on non-public, material information, which is illegal under various securities laws and regulations. In India, insider trading is governed by the Securities and Exchange Board of India (SEBI) regulations and the Companies Act, 2013. At Zolvit, we are well-versed in these legal frameworks and committed to providing expert guidance to manage and resolve insider trading cases effectively.
Lawyers for Insider Trading Cases in India
The term 'illegal insider trading' refers to buying or selling securities based on material, nonpublic information in breach of a fiduciary duty. There are other insider trading violations, too, like tipping, trading, and misappropriation. SEBI (Prohibition of Insider Trading) Regulations, 2015, the Securities and Exchange Board of India (SEBI) enforces insider trading laws.You can face fines, jail time, and even be banned from public company jobs if you get caught insider trading. The Securities and Exchange Commission (SEC) in India, governed by SEBI, strictly enforces these laws under the SEBI (Prohibition of Insider Trading) Regulations, 2015. Violations are considered serious white-collar crimes.
Indian Law on Insider Trading
Using confidential, non-public information to gain an unfair advantage in the securities market is insider trading. Those found guilty of insider trading in India face severe legal consequences. This practice is prohibited under Indian Securities Law to maintain market fairness.
Individuals with access to non-public, price-sensitive information about a company may engage in insider trading by buying or selling securities (such as stocks, bonds, or options). The information is typically acquired through one's position within the company, such as director, officer, employee, or advisor. Compliance with financial regulations is crucial for maintaining market integrity and corporate governance.
Examples of Insider Trading Activities
Insider trading activities include buying or selling stocks based on non-public, material information, such as a company's upcoming merger or financial results. Here are four example of the same:
- Earnings reports unreleased: Shares can be purchased or sold based on knowledge of a company's quarterly earnings before they are released to the public.
- Mergers and Acquisitions: Buying or selling securities based on insider information about mergers and acquisitions.
- Tipping: In exchange for mutual benefit, sharing non-public information with others.
- Front Running: Initiating trades in advance of large orders that are expected to impact a security's price.
India's Insider Trading Legislation
Securities and Exchange Board of India (SEBI) Act, 1992
In 1992, the Securities and Exchange Board of India (SEBI) was established as the regulatory body for the Indian securities market. Insider trading activities are regulated and monitored by SEBI.
SEBI (Prohibition of Insider Trading) Regulations, 2015
These regulations prevent insider trading in India. These rules define key terms, define what constitutes insider trading, and outline who is responsible for preventing confidential information misuse. Insider trading also comes with penalties.
Companies Act, 2013 - Relevant Provisions
Corporate governance and fiduciary duties of directors and officers are covered in the Companies Act, 2013, which is relevant to insider trading. To ensure transparent business practices and that insiders don't exploit their positions, sections of this Act intersect with SEBI rules.
Legal Consequences of Insider Trading
An insider trading scandal can severely undermine investor confidence. Trading based on non-public information creates an uneven playing field. Individuals may face significant legal consequences, including fines and imprisonment.
Possible penalties
Lawyers involved in insider trading cases in India may face disbarment or suspension from practising law if found guilty of unethical conduct. They could also be subject to criminal charges. Here are four possible penalties for the same:
Imprisonment
A conviction for insider trading can result in imprisonment. According to SEBI regulations, the sentence can extend up to ten years.
Fines
Insider trading can result in significant fines for individuals and companies. You can be fined up to ₹25 crore or three times your profits from insider trading.
Disqualification
Directors and key management positions may be disqualified for insider traders. Their careers can be impacted long-term by this disqualification.
Reputation Damage
Insider trading can damage individuals' and companies' reputations irreparably, affecting future business opportunities and relationships.
Our Services
Zolvit will take care of every aspect of your insider trading case, ensuring your interests are protected. In cases of insider trading, legal representation is vital. Securities law experts provide comprehensive legal defence for individuals or corporations accused of insider trading, ensuring adherence to regulatory compliance standards.
For Insider Trading Accused
Individuals accused of insider trading in India can face criminal penalties, including imprisonment of up to 10 years and significant fines, as stipulated under the Securities and Exchange Board of India (SEBI) Act, 1992. They may also incur civil penalties, such as the forfeiture of profits made from illegal trades and being barred from trading in securities or holding positions in listed companies. Here are five aspects of insider trading accusation:
- Initial Consultation and Case Evaluation: Our lawyers thoroughly explain the charges you face as well as any possible financial and legal consequences. If convicted, you may face severe penalties. The strength of the prosecution's case will be carefully evaluated by our lawyers. Our lawyers will look for weaknesses or gaps in the prosecution's case that will help you win the case.
- Investigation and Evidence Gathering: During our investigation, we gather critical evidence such as financial records, communication logs, transaction histories, and other documents to support your case. Financial records and communication logs may reveal inconsistencies, errors, or evidence.
- Defense Strategy Development: Our investigation can lead to a defence strategy that challenges the evidence, questions the intent behind your actions, or demonstrates compliance with legal requirements. When appropriate, we explore the possibility of negotiating a settlement with a victim to reduce charges or dismiss the charges entirely. Our team will also offer compliance advisory and risk mitigation strategies to prevent potential violations, helping organisations maintain robust corporate governance.
- Trial representation: In the event of a trial, our skilled litigators will represent you in court, defending your case and challenging the prosecution's evidence. Providing a Robust DefenseWe are prepared to cross-examine witnesses rigorously, uncover inconsistencies in their testimony, and present compelling evidence in your favour.
- Post-conviction support: In addition to filing appeals or revising sentencing, we offer post-conviction support aimed at reducing the impact of conviction. We aim to ensure compliance with all regulatory orders and minimise further harm.
For Insider Trading Victims
Victims of insider trading can report the misconduct to the Securities and Exchange Board of India (SEBI) to initiate an investigation. They may also pursue civil litigation to seek compensation. Here are three step process to follow:
- Legal Consultation and Support: You can recover losses due to insider trading by using our consultation services.
- Filing Complaints and Legal Action
1. Whether it is SEBI or another regulatory body, our team helps you file complaints.
2. All legal documents for civil and criminal proceedings are prepared and filed by us.
- Asset Recovery: In the event of insider trading losses, we pursue all legal remedies.
- Representation in Court: Our firm seeks your financial damages and holds those responsible for insider trading accountable in court.
- Negotiation and settlement: In some cases, settlement negotiations are the most effective way to recover losses.
Our legal representative, who specialises in securities fraud and white-collar crimes, assists in guiding the litigation process, from the initial investigation through court defence and, if possible, settlement negotiations.
Why Choose Zolvit’s Insider Trading Legal Services?
The lawyers at our firm specialise in insider trading cases. In addition to consultations and post-trial support, we provide client testimonials. Successful outcomes in insider trading. Effective representation that is tailored to your situation.
FAQs for Insider Trading
What is insider trading?
What are the penalties for insider trading in India?
What constitutes confidential information in insider trading cases?
How can a defense attorney help in an insider trading case?
What should I do if I am accused of insider trading?
Can I get bail for an insider trading charge?
What are common defenses in insider trading cases?
What is the role of SEBI in insider trading cases?
How can I prove a lack of intent in an insider trading case?
What are the long-term impacts of an insider trading conviction?
Can insider trading charges be expunged from my record?
What support services are available for victims of insider trading?
How do insider trading laws differ by state in India?
What should I do if I suspect insider trading?