Question
What is the purpose of including various categories of
persons as connected persons as per SEBI (Prohibition of Insider Trading) Regulations, 2015?Solution
As per Reg 2- "connected person" means,-(i)any person who is or has during the six months prior to the concerned act been associated with a company, directly or indirectly, in any capacity including by reason of frequent communication with its officers or by being in any contractual, fiduciary or employment relationship or by being a director, officer or an employee of the company or holds any position including a professional or business relationship between himself and the company whether temporary or permanent,that allows such person, directly or indirectly,access to unpublished price sensitive information or is reasonably expected to allow such access.
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