Illegal practice of trading securities based on material, non-public information. SEBI actively monitors and penalizes insider trading in Indian markets.
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I
Insider Trading
Tax & Regulations
Related terms
80C Deduction
Section 80C of the Income Tax Act allows deductions up to Rs 1.5 lakh per year for investments in ELSS mutual funds, PPF, EPF, NPS, and other specified instruments.
Capital Gain
The profit realized when a security is sold for more than its purchase price. In India, classified as short-term (held <=12 months) or long-term (held >12 months) for tax purposes.
Holding Period
The duration for which an investor holds a security. Determines tax treatment: equity held over 12 months qualifies for LTCG rates in India.
KYC
Know Your Customer. A mandatory verification process required by SEBI before opening a demat or trading account. Involves identity and address verification via Aadhaar, PAN, etc.
LTCG
Long Term Capital Gains. Profits from selling equity shares held for more than 12 months. In India, LTCG above 1.25 lakh per year is taxed at 12.5%.
PAN
Permanent Account Number. A 10-digit alphanumeric identity issued by the Income Tax Department. Mandatory for all stock market transactions and KYC in India.