SEBI, vide notification dated July 29, 2024, has issued a consultation paper on the proposed amendments to the Insider Trading Norms. The key goals are to refine the definition of "connected person" to align with the Companies Act, 2013 and harmonise the definition of "relative" to match the Income Tax Act, 1961, while retaining the term "immediate relative" but removing its explanatory note. SEBI also proposes including new categories of "deemed connected persons" who may have access to Unpublished Price Sensitive Information due to their proximity with the connected person.
The public consultation seeks comments on these changes to expand the regulatory scope without increasing compliance burdens.
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