When an insider communicates unpublished price sensitive information (UPSI), then the laws against insider trading intervene which primarily deal with such matters. The information should have been used to trade securities. The SEBI (Prohibition of Insider Trading) Regulations deal with insider trading offences in India. The purpose of this paper is to analyse the case of V.K. Kaul v. SEBI. The two main issues that were dealt by the court in this case were namely, what is UPSI and who is considered as an insider. This case is a landmark judgement for the application of circumstantial evidence in the case of insider trading. To determine the same, reliance was placed on the precedent set by the US courts in an earlier case. This paper will also analyse the main issues of this case in accordance with the laws of US for the purpose of a better understanding of their position.
