Section 195 of the Companies Act, 2013
Section 195 of the Companies Act, 2013 was originally related to Prohibition of Insider Trading of securities, but it has been omitted.
🔴 Status of Section 195:
Title: Prohibition of Insider Trading of securities.
Status: Omitted by the Finance Act, 2017, effective from 9th February 2018.
🔍 What Section 195 Originally Covered:
Before being omitted, Section 195 prohibited any person, including company insiders, from:
Engaging in insider trading,
Communicating unpublished price-sensitive information (UPSI) to others,
Dealing in securities on the basis of such information.
Violations were punishable with imprisonment and/or fine.
✅ Current Applicable Law on Insider Trading:
After the omission of Section 195 from the Companies Act, insider trading is now governed by:
SEBI (Prohibition of Insider Trading) Regulations, 2015, enforced by the Securities and Exchange Board of India (SEBI).
These regulations apply to listed companies and their directors, employees, and connected persons.
RELATED Blog
0 comments