The Securities and Exchange Board of India (SEBI) on July 29, 2024, issued a Consultation Paper on proposed amendments to the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 to rationalize the scope of the expression ‘connected person’, while not increasing compliance requirements.
The following objective has been stated:
To seek comments and input from the members of the public on the proposals for amendments to the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations), to rationalize the scope of the expression ‘connected person’ under the PIT Regulations to expand the regulatory scope of PIT Regulations, as follows:
• To rationalize the scope of the definition of “connected person” under regulation 2(1)(d) of the PIT Regulations drawing reference from the definition of “related party” under section 2(76) of the Companies Act, 2013 and experience.
• To rationalize the definition of “relative” in regulation 2(1) (hc) in line with the definition of relative under the Income Tax Act, 1961and remove “Note” from the definition of “immediate relative” in regulation 2(1)(f) of PIT Regulations.
