SEBI Strengthens Insider Trading Crackdown

• Securities and Exchange Board of India (SEBI) expands definition of “connected persons” with access to price sensitive information.
• Definition includes firms, partners, employees, and individuals sharing household or residence.
• Prohibition of Insider Trading (PIT) Regulations of 2015 expands relatives covered under securities law.
• Relatives include spouse, parents, in-laws, siblings, children, and children’s spouses.
• Changes aim to facilitate effective investigation and enforcement against insider trading.