Insider trading
Also called: UPSI, unpublished price sensitive information, insider dealing
Trading in a company's shares while holding unpublished price sensitive information about it, or passing that information to others who trade.
Unpublished price sensitive information is information that is not public and would be likely to move the share price if it were, such as results, a takeover or a major order. Insider trading is prohibited under SEBI's regulations.
The rules cover anyone who has such information, not only directors and staff, so someone who trades on a tip about unannounced results can be in breach too.
Example
An auditor who buys shares in a client company the day before it announces unexpectedly strong results, knowing them in advance, is insider trading.
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