SEBI announces expansion of definition of connected person under insider trading regulations

Market regulator SEBI has announced the expansion of the definition of "connected person" under insider trading regulation.

In a release that was shared after the quarterly board meeting held on September 30, the regulator announced that the board has expanded the definition of connected person to include a firm or its partner or employee where a “connected person” is also a partner, as well as individuals sharing a household or residence with a “connected person.” Additionally, the provisions related to connected persons will now apply to “relatives” rather than just “immediate relatives.”

As per the SEBI release, a new definition of “relative” will also include the spouse, parents (including parents of the spouse), siblings (including siblings of the spouse), and children (including children of the spouse), along with their spouses.

The regulator noted that these changes will not impact the existing provisions of the code of conduct applicable to designated persons and their immediate relatives, ensuring that no additional disclosures will arise from these amendments.