Securities and Exchange Board of India (SEBI) has issued SEBI (Prohibition of Insider Trading) (Third Amendment) Regulations, 2024 to further amend SEBI (Prohibition of Insider Trading) Regulations, 2015.

Key highlights of the amendments are mentioned below:

1. Definition of Connected Person shall also include the below mentioned as ‘deemed connected person’.
   1. a firm or its partner or its employee in which a connected person is also a partner; or
   2. a person sharing household or residence with a connected person.
2. Anyone in possession or having access to unpublished price sensitive information should be considered as an “insider” regardless of how they have gained access to such information.
3. The word Immediate Relative has been substituted as Relative for determination of ‘Deemed Connected Person’.
4. Relative shall mean:
   1. spouse of the person.
   2. parent of the person and parent of its spouse.
   3. sibling of the person and sibling of its spouse.
   4. child of the person and child of its spouse.
   5. spouse of the person listed at point (iii) and
   6. spouse of the person listed at point (iv).

Source: E-Gazette

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