SEBI vide Notification dated December 4, 2024, has amended the SEBI (Prohibition of Insider Trading) Regulations, whereby the following key changes have been made. Primarily, the definition of “Connected Person” given under Regulation 2(d) has been amended to encompass a broader range of individuals and entities with access to unpublished price-sensitive information (UPSI).
- The definition of deemed connected persons under Regulation 2(d)(ii) has been amended as below:
- The term “Immediate Relative” used in clause (a), (j) and Note, has been replaced with “Relative” to expand the scope of individuals deemed to be connected persons.
- Two new clauses have been included:
- a firm or its partner or its employee in which a connected person specified in sub-clause (i) of clause (d) is also a partner; or
- a person sharing household or residence with a connected person specified in sub-clause (i) of clause (d).
- Definition of “Relative” has been inserted as clause (hb) to mean spouse, parents of the person and spouse, siblings of the person and spouse, child of the person and spouse, spouse of the siblings and spouse of the children.
By replacing the term “immediate relative” with “relative” only for the purpose of connected person, the Regulation have expanded the scope of persons , who could be considered as insiders.
Click here to view the notification for your reference and records.
