MUMBAI (Reuters) – India’s markets regulator on Monday proposed stricter rules to restrict insider trading by bringing more people who could have access to sensitive information about a listed company under the ambit of its regulations.
The Securities and Exchange Board of India in a discussion paper uploaded on its website said certain people may not hold any position in the company but could still have access to unpublished information due to their proximity or close relations to the firm.
The wider scope of so-called “connected persons” could include firms sharing a partner with a listed firm, any person whose advise or directions are acted upon by the listed firm, persons residing in the same house and persons having material financial relations with company insiders.
SEBI has invited comments from market participants till 18 August, before it finalises the new rules.
(Reporting by Jayshree P Upadhyay; Editing by Nivedita Bhattacharjee)
