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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Securities and Exchange Board of India (Prohibition of Insider Trading) (Third Amendment) Regulations, 2024

05-Dec-2024 | SEBI/LAD-NRO/GN/2024/215

SEBI has issued Securities and Exchange Board of India (Prohibition of Insider Trading) (Third Amendment) Regulations, 2024, effective from 6th December 2024. Key highlights- 1. Clause (i) in the definition of connected persons is substituted, the new clause now reads as "any person who is or has been, during the six months prior to the concerned act, associated with a company, in any capacity, directly or indirectly, including by reason of frequent communication with its officers or by being in any contractual, fiduciary or employment relationship or by being a director, officer or an employee of the company or holds any position including a professional or business relationship, whether temporary or permanent, with the company, that allows such a person, directly or indirectly, access to unpublished price sensitive information or is reasonably expected to allow such access" (Regulation 2(1)(d)(i)) 2. Every relative of the connected person shall now deemed to be a connected person in terms of Regulation 2(1)(d)(ii)(a), instead of only immediate relatives. 3. The scope of list of persons falling in the categories specified under Regulation 2(1)(d)(ii) who shall be deemed to be connected person is widened by including the following 2 categories- (k). 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 (l). a person sharing household or residence with a connected person specified in sub-clause (i) of clause (d). 4. The note to the definition of immediate relative as specified in Regulation 2(1)(f) is ommitted. Kindly refer to the attached document for more information.

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