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Section15G
The Securities and Exchange Board of India Act, 1992

Penalty for insider trading

In force From 30 Jan 1992 Act 15 of 1992 As on 16 Oct 2026

Act 15 of 1992 Ministry Finance Enacted 04 Apr 1992 In force 30 Jan 1992 Cited by 3 provisions Instruments 3

Section 15G of the Securities and Exchange Board of India Act, 1992 deals with penalty for insider trading. If any insider who, (i) 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on behalf of any other person, deals in securities of a body corporate listed on any stock exchange on the basis of any unpublished price sensitive information; The Act came into force on 30 Jan 1992.

1[15G. Penalty for insider trading.-- If any insider who,

(i) 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on behalf of any other person, deals in securities of a body corporate listed on any stock exchange on the basis of any unpublished price sensitive information; or

(ii) communicates any unpublished price sensitive information to any person, with or without his request for such information except as required in the ordinary course of business or under any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

(iii) counsels, or procures for any other person to deal in any securities of any body corporate on the basis of unpublished price sensitive information,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 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].]

Section 15G, The Securities and Exchange Board of India Act, 1992 (Act 15 of 1992).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

Referred to by 3

  1. s. 11 Functions of Board
  2. s. 11B Power to issue directions and levy penalty
  3. s. 15J Factors to be taken into account while adjudging quantum of penalty

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

  1. Balram Garg v. Securities and Exchange Board of India

    Supreme Court of India 19 Apr 2022 Binding (Supreme Court) Reportable (2022) 9 SCC 425

    Court's Decision & Legal Precedent

    Judgement of Main Case order-8.pdf 2022-04-19 (not same-date ROP order-7). CA 7054/2021. SEBI Act s.12A insider-trading prohibition and s.15G penalty: UPSI plus a connected person is not enough; the charge needs a foundation that the accused was an insider who traded on that UPSI. Circumstantial suspicion (relative traded) does not substitute for that proof. Map sebi-act 12A and 15G.

    On this section: s.15G penalty for insider trading rides on the same proof as s.12A. Circumstantial suspicion that a family member traded while UPSI existed does not attract 15G without proof that the accused was the insider.

    Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.

Made under this section, and citing it

3 instruments name this provision in its title or its text without being made under it.

All subordinate legislation

Questions about Section 15G

What have the courts held on Section 15G of the Securities and Exchange Board of India Act?

Balram Garg v. Securities and Exchange Board of India (19 Apr 2022) is the leading judgment on this section among those set out below: s.15G penalty for insider trading rides on the same proof as s.12A. Circumstantial suspicion that a family member traded while UPSI existed does not attract 15G without proof that the accused was the insider.

How do I find court cases under Section 15G of the Securities and Exchange Board of India Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Sebi Act 15G, section 15G Sebi Act, section 15G of the Securities and Exchange Board of India Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Balram Garg v. Securities and Exchange Board of India (19 Apr 2022).

What should I read with Section 15G of the Securities and Exchange Board of India Act, and has it changed?

3 other provisions in this corpus refer back to it. 3 instruments name it without being made under it, most recently SEBI (Prohibition of Insider Trading) Regulations, 2015 (Last amended on January 21, 2019) (2019), then SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (1995).

When did Section 15G of the Securities and Exchange Board of India Act come into force?

Section 15G of the Securities and Exchange Board of India Act, cited as Sebi Act 15G, came into force on 30 Jan 1992, having been enacted on 04 Apr 1992. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 16 Oct 2026. This page is not a substitute for legal advice.