SEBI(Prohibition of Insider Trading) (Third Amendment) Regulations, 2024

Relevant Act/Regulations: SEBI (Prohibition of Insider Trading) Regulations, 2015

Relevant Section/Regulation No: Reg. 2(1) clause d(i);  Reg. 2(1) clause d(ii); Note to Reg 2(1) clause d, f and g
 
SEBI has introduced SEBI(Prohibition of Insider Trading) (Third Amendment) Regulations, 2024 to amend SEBI (Prohibition of Insider Trading) Regulations, 2015 w.e.f. December 4, 2024. 
 
The amendments mainly include :
 
i) substitution of definition of “Connected persons”  in Regulation 2(1) clause d(i)
ii) changes in clause d(ii) of Regulation 2(1)
iii) changes in note to clauses d,f and g of Reg 2(1)
iv) After clause hb, clause hc is inserted whereby the term  “relative” now includes the spouse, parents, siblings, and children of a connected person. 
 
It also updates the criteria for determining who qualifies as an insider, clarifying that anyone who has access to Unpublished Price Sensitive Information (UPSI) is considered an insider, regardless of the method by which they obtained access. 

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