Securities And Exchange Board Of India (SEBI) Tightens Insider Trading Regulations By Broadening The Definition Of ‘Connected Persons’ And Introducing The Definition Of ‘Relatives’.

To read the article on Mondaq, click here. After SEBI's quarterly board meeting, held on September 30, 2024, the regulator has, strengthened its anti-insider trading rules i.e. the SEBI (Prohibition of Insider Trading) Regulations, 20151 (the "PIT Regulations"), by broadening the definitions of 'connected persons' and 'immediate relatives'. The PIT Regulations, which came into effect in May, 2015, were designed to level the playing field for all investors by preventing insider trading activities. However, lately, there has been growing cases of individuals & entities exploiting their access to UPSI to gain an unfair advantage in the securities market. Presently, under the PIT Regulations,...

Continue reading