News: SEBI has decided to expand the definition of ‘connected’ persons’ who have access to price sensitive information, to tighten the noose on insider trading.
1. Insider Trading refers to the malpractice of trading of shares and other securities of a listed company using unpublished price sensitive information.
2. Unpublished Price Sensitive Information (UPSI) refers to any information related with company’s stock prices, quarterly results, acquisition, or merger deals that is not generally available in public domain.
3. The availability of UPSI in public domain affects the prices of the securities.
4. Insider Trading is prohibited under the SEBI’s Prohibition of Insider Trading (PIT) Regulations, 2015
