A US appeals court on Tuesday granted former Goldman Sachs director Rajat Gupta's request to stay free on bail the appeal of his insider trading conviction.

India-born 63-year-old Gupta, who was arrested in October last year on insider trading charges, was to start his two-year prison sentence on 8th of January.

The prosecutors requested the Second US Circuit Court of Appeals to turn down Gupta's plea to remain free on bail during appeal saying he was a flight risk, but Gupta's lawyers argued that Gupta was not a flight risk because he had been living in the US for more than four decades and his family, including his wife, four daughters and grandchildren, all were living in America.

Circuit Judge Jose Cabranes granted Gupta's plea but attached some conditions to the grant.

Pronouncing the ruling, Judge Cabranes said, "Motion is granted. It is hereby ordered that the conditions of release imposed by the district court will be continued."

The list of his other bail conditions includes surrender of his passport and travel restrictions. Gupta has been free on a US$10 million bail since his arrest in October last year.

Gupta was convicted in June of leaking secret boardroom information about Goldman Sachs to his friend and business associate Raj Rajaratnam.