Sebi notifies tighter insider trading rules

The Securities and Exchange Board of India (Sebi) has notified the expansion of the definition of "connected persons" who have access to price-sensitive information, with effect from December 5.

- AKSHATA GORDE

Bringing in more people under the scanner, the regulator has included relatives, related firms or partners and people living in the same household or residence as the person involved, to be a part of 'deemed connected persons'.

Sebi has changed 'immediate relative' to 'relative', which now includes spouse, parents (including in-laws), brothers and sisters (and their spouses), and children (and their spouses) of the person involved.

The regulator aims to close any regulatory loopholes and prevent potential violations. If accused of insider trading, these deemed connected persons would need to prove that they did not possess any unpublished price sensitive information (UPSI).