Section 21D in The Forward Contracts (Regulation) Act, 1952
21D. Penalty for insider trading. —If any insider who,—(i) either on his own behalf or on behalf of any other person, deals in forward contract or option in goods or option in commodity derivative on any association on the basis of any unpublished price sensitive information; or
(ii)communicates any unpublished price sensitive information to any person, with or without his request for such information except as required in the ordinary course of business or under any law; or(iii)counsels, or procures for any other person to deal in any forward contract or option in goods or option in commodity derivative on the basis of unpublished price sensitive information,shall be liable to a penalty of twenty-five lakh rupees or three times the amount of profits made out of insider trading, whichever is higher.
