The penalties and punishment for the violation of the guidelines and corporate governance have been amended to be strict especially with the discovery of the increase in the frauds in the Indian and international capital markets. Insider trading is a concept based on the availability of the price which is unpublished and other sensitive information which the company has listed in the stock market. The process of using the information which is unpublished for one’s own personal gains is called ‘Insider trading’. The process and act of insider trading has time and again been drawing attention of the government and the related agencies. SEBI had drafted a detailed regulation for a comprehensive and self-contained legislation on the issue also known as Securities Exchange Board of India (Insider Trading)
Regulations, 1992. There have been certain sanctions that have been issued like Civil Sanctions, Criminal Sanctions, etc which have been issued to prohibit insider trading in India.

In conclusion, the regulations and sanctions implemented have been in order for the investors to have equal access to all the information from the stock market. The process or assumption of unfair dealing must be avoided. The regulator of the stock market must specify the schedule and regulations for avoiding insider trading. The annual report about the amount to which the company has complied with the schedule set forth must be mandated to be given to the stock market and those companies which do not follow the guidelines must be oenalised by its shareholders.