law: Companies Act, 2013 
  194.
  
    Prohibition
  
  on forward dealings in securities of company by director or key managerial
  
  personnel.
  1.      No director of a
  
  company or any of its key managerial personnel shall buy in the company, or in
  
  its holding, subsidiary or associate company—
  a.     
  
    a
  
  right to call for delivery or a right to make delivery at a specified price and
  
  within a specified time, of a specified number of relevant shares or a
  
  specified amount of relevant debentures; or
  b.    
  
    a
  
  right, as he may elect, to call for delivery or to make delivery at a specified
  
  price and within a specified time, of a specified number of relevant shares or
  
  a specified amount of relevant debentures.
  1.     
  2.      If a director or any
  
  key managerial personnel of the company contravenes the provisions of
  
  sub-section (1 ), such director or key managerial personnel shall be
  
  punishable with imprisonment for a term which may extend to two years or with
  
  fine which shall not be less than one lakh rupees but which may extend to five
  
  lakh rupees, or with both.
  3.      Where a director or
  
  other key managerial personnel acquires any securities in contravention of
  
  sub-section (1 ), he shall, subject to the provisions contained in
  
  sub-section (2 ), be liable to surrender the same to the company and the
  
  company shall not register the securities so acquired in his name in the
  
  register, and if they are in dematerialised form, it shall inform the
  
  depository not to record such acquisition and such securities, in both the
  
  cases, shall continue to remain in the names of the transferors.
  Explanation .—For the purposes of
  
  this section, ‘‘relevant shares’’ and ‘‘relevant debentures’’ mean shares and
  
  debentures of the company in which the concerned person is a whole-time
  
  director or other key managerial personnel or shares and debentures of its
  
  holding and subsidiary companies.