law: Companies Act, 2013 
  195.
  
    Prohibition
  
  on insider trading of securities.
  1.      No person including
  
  any director or key managerial personnel of a company shall enter into insider
  
  trading:
  Provided
  
  that nothing contained in this sub-section shall apply to any communication
  
  required in the ordinary course of business or profession or employment or
  
  under any law.
  Explanation.— For the purposes of
  
  this section,—
  a.     
  
    “insider
  
  trading” means—
                       
  
   i.        
  
    an
  
  act of subscribing, buying, selling, dealing or agreeing to subscribe, buy,
  
  sell or deal in any securities by any director or key managerial personnel or
  
  any other officer of a company either as principal or agent if such director or
  
  key managerial personnel or any other officer of the company is reasonably
  
  expected to have access to any non-public price sensitive information in
  
  respect of securities of company; or
                      
  
   ii.        
  
    an
  
  act of counselling about procuring or communicating directly or indirectly any
  
  non-public price-sensitive information to any person;
  a.    
  
  
  b.    
  
   “price-sensitive
  
  information” means any information which relates, directly or indirectly, to a
  
  company and which if published is likely to materially affect the price of
  
  securities of the company.
  2.      If any person
  
  contravenes the provisions of this section, he shall be punishable with
  
  imprisonment for a term which may extend to five years or with fine which shall
  
  not be less than five 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, or with both.