CHINTALAPATI SRINIVASA RAJU vs SECURITIES AND EXCHANGE BOARD OF INDIA

The Supreme Court addressed the liability of the appellant under the SEBI (Prohibition of Insider Trading Regulations), 1992, holding that the appellant, as a director and co-brother of the promoter, qualified as a 'connected person' under Regulation 2(c). The Court emphasized that knowledge of unpublished price sensitive information (UPSI) and the appellant's role in SCSL established his culpability in insider trading. The appeal was dismissed, affirming the SEBI's decision to impose penalties for violations of the insider trading regulations.