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June 14, 2026
The Dispatch

Definition

SEBI Insider Trading Code (PIT)

The SEBI (Prohibition of Insider Trading) Regulations, or PIT, ban trading in a company's securities while in possession of unpublished price-sensitive information.

The PIT Regulations prohibit insiders — connected persons with access to UPSI — from trading in the company's shares, or passing the information to others, until it is made public. Listed companies must adopt a code of conduct, maintain a structured digital database of UPSI sharing, and enforce a trading window closure around results.

Violations attract heavy SEBI penalties and disgorgement. The regulations include carve-outs such as trading under a pre-approved trading plan and exemptions for legitimate purposes, balancing market integrity with normal corporate activity.

Related terms

  • Unpublished Price-Sensitive Information (UPSI)UPSI is non-public information about a company that, once known, could materially affect the price of its securities.
  • Trading WindowThe trading window is the period during which a company's insiders are permitted to trade its shares; it is closed when UPSI exists.

Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.