Regulation 3 of SEBI prohibits insider trading in India by barring dealing in securities, communicating, counseling, or procuring unpublished price sensitive information by insiders. Listed companies have obligations including appointing a compliance officer, framing a code of conduct, disclosing information to exchanges, and ensuring data security. Violations can result in penalties up to 3 times profits made or Rs. 25 crores fine, criminal prosecution, or prohibiting an insider from dealing in securities. SEBI has amended insider trading regulations over time and constituted a committee in 2013 to strengthen the framework, with key changes including expanded definitions and eased compliance burden.