The Securities and Exchange Board of India (SEBI) expanded the definition of “connected persons” who have access to price sensitive information to tighten noose on insider trading. The market regulator also came down heavily on speculative trading and introduced a stricter framework for futures and options (F&O) trading effort in an effort to curb

If you invest in the stock market, you have likely heard of insider trading. Generally, accusations related to insider trading involve news or manipulation regarding shares, targeting several prominent investors.

SEBI's new definition of a 'relative' now includes the spouse, parents (including in-laws), siblings (and their spouses), and children (and their spouses) of the person being investigated. However, some legal experts are worried about how effective this change will be and what it could mean for those who are innocent.

SEBI has introduced measures to curb risks in F&O trading, requiring upfront premiums, increasing contract sizes, and limiting weekly expiries to protect retail investors.

Market experts believe that tighter F&O rules could help limit speculation in the derivatives market, protect the interest of retail investors, increase constructive participation, and improve market stability.