ECONOMY
SEBI’s discussion paper widens net of “connected persons” to curb insider trading
- IBJ Bureau
- Jul 30, 2024
Markets regulator Securities and Exchange Board of India (SEBI) has proposed stricter rules to restrict insider trading by bringing more people who could have access to sensitive information about a listed company under the ambit of its regulations.
In a discussion paper uploaded on its website, the SEBI has said that certain people may not hold any position in the company but could still have access to unpublished information due to their proximity or close relations to the company.
The wider scope of so-called “connected persons” could include companies sharing a partner with a listed company, any person whose advice or directions are acted upon by the listed company, persons residing in the same house and persons having material financial relations with company’s insiders.
SEBI has invited comments from market participants till August 18 before it finalises the new rules.
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