SEBI : Wider definition of ‘Insider’
Securities & Exchange Board of India (SEBI) has expanded the definition of insider by including persons connected on the basis of being in any contractual, fiduciary or employment relationship. Immediate relatives and any person who has access to unpublished price sensitive information will be considered insiders. Directors and employees of a company as well as persons who may not seemingly occupy any position in a company but are in regular touch with the company and its officers will also come under the purview of SEBI’s new rules. Third- party connected persons must disclose holdings and trading in a company’s shares. Derivatives trading by directors and Key Managerial Personnel (KMPs) in securities of the company is prohibited.