SEBI Insider Trading Regulations 2015 replaced the 1992 framework, defining insider trading as trading securities while possessing unpublished price-sensitive information (UPSI). Key provisions include designated persons, trading windows, disclosures, and substantial penalties. Recent amendments in 2018-2020 expanded coverage to derivatives, strengthened disclosure norms, and introduced structured digital database requirements. The regulations apply to listed companies, intermediaries, and their connected persons, with violations attracting imprisonment up to 10 years and monetary penalties.

The 2015 regulations transformed India's insider trading framework by shifting from a prescriptive to principles-based approach. Unlike the rigid 1992 rules, these regulations define UPSI broadly as information that materially affects security prices, giving SEBI flexibility in enforcement. The concept of 'connected persons' extends beyond company insiders to include intermediaries, analysts, and consultants who access UPSI. Trading windows mechanism allows routine transactions while restricting trades during sensitive periods like quarterly results. The structured digital database (SDD) requirement, introduced via 2018 amendments, mandates systematic recording of UPSI sharing, enhancing audit trails. Recent amendments expanded derivative trading restrictions and strengthened disclosure timelines for promoter transactions. The regulations balance market efficiency with investor protection by allowing legitimate information flow while deterring manipulative practices. For listed companies, compliance involves board-level oversight, periodic training, and robust information barriers. The framework's effectiveness depends on proactive surveillance systems and swift enforcement, making it crucial for maintaining market integrity in India's capital markets ecosystem.