SEBI Amends Insider Trading Rules: Expands Definition of "Connected Persons" and "Relatives," Clarifies Insider Criteria.

The Securities and Exchange Board of India (SEBI) has issued the Third Amendment to the Prohibition of Insider Trading Regulations, 2024. Key changes include redefining "connected persons" to include those with direct or indirect access to unpublished price-sensitive information (UPSI) within six months prior to an act. The term "immediate relatives" is replaced with "relatives," expanding the definition to include spouses, parents, siblings, and children of connected persons. The amendment clarifies that anyone with access to UPSI is considered an insider, with the burden of proof on the accuser to demonstrate possession of UPSI during trading.