"The Securities Exchange Commission's (SEC) complaint alleged that Rajat. K. Gupta tipped his business associate Rajaratnam who was the Founder and Managing Partner of Galleon Management certain confidential (insider) information worth billions which Rajat had learnt in the course of his duties when he was a member of the Board of Directors of the Goldman Sachs Group, Inc. The complaint alleged that Gupta disclosed material non- public information concerning Berkshire Hathaway Inc's 5 million US Dollars investment in Goldman Sachs in September 2008.

Rajaratnam used the information he learned from Rajat to trade profitably in Galleon hedge funds. By engaging in this conduct Rajat and Rajaratnam violated Section 10(b) of the Securities Exchange Act, 1934, Exchange Act Rule 10b-5 and Section 17(a) of the Securities Act of 1933. On June15, 2012 in a parallel criminal case arising out of the same facts, Gupta was convicted on one count of conspiracy and three counts of securities fraud.

On October 24, 2012 Gupta was sentenced to two years in prison and one year of supervised release and ordered to pay a fine of 5 million US Dollars.

The Securities Exchange Commission (SEC) ordered Rajaratnam to disgorge his share of profits gained and losses avoided as a result of Insider Trading."

On the basis of the above case study, comment on the various provisions of Insider Trading in India. Also comment on the penalties charged on insider trading in India.