look news india
The Securities and Exchange Board of India (SEBI) has proposed changes to insider trading rules to include relatives, related companies or partnerships, people living in the same household and Hindu Undivided Families.
Where the actor is related to a person associated with the company, as part of a connected person among others. Sebi has suggested revising the definitions of connected person and relative under the insider trading prohibition rules to plug any regulatory loopholes and prevent potential violations. These changes are proposed in a consultation paper. The regulator has invited comments from the public on the matter by August 18.
In order to bring more and more persons connected with those having price sensitive information under the ambit of PIT, SEBI has initiated the exercise of amending the rules.
SEBI has said that relatives who do not yet fall within the ambit of the rules may have access to unpublished price sensitive information (UPSI) due to their relationship with key officials or key employees of the company. If any such relative is accused of insider trading, these related persons will have to prove that they do not have UPSI. Apart from this, SEBI has proposed to change the term immediate relative to relative to cover a wider group of family members such as parents, siblings, spouse and in-laws. However, SEBI has proposed to retain the definition of immediate relative for trading disclosures by promoters, directors and nominees under the Prohibition of Insider Trading (PIT) Regulations.
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Sebi has proposed to change the term immediate relative to include a wider group of family members under insider trading rules.
SEBI has said that relatives who are not yet covered under the regulations can have access to unpublished price sensitive information (UPSI).
SEBI has invited public comments by August 18 to suggest its proposal
