Third Phase – In 1986, The Patel Committee had defined insider trading as "the trading in the shares of a company by the person who are in the management of the company or are close to them on the basis of undisclosed price sensitive information regarding the working of the company, which they possess but which is not available to others. Fourth Phase – In 1989, The Abid Hussain Committee had recommended that a person guilty of insider trading should be penalized, both in the form of civil and criminal proceeding. On the basis of the recommendations made by these committees, a comprehensive legislation, 'SEBI (Insider Trading) Regulations, 1992 was promulgated and brought in to force. Fifth Phase – In order to plug certain loopholes revealed in the case of Hindustan Lever Ltd. v. SEBI and Rakesh Agarwal v. SEBI, regulation was amended and renamed as SEBI (Prohibition of Insider Trading) Regulations, 1992.