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Stock market regulator SEBI-Securities and Exchange Board of India has announced changes in the rules. According to the information released by SEBI, the scope of connected persons under insider trading has been increased. The scope of connected persons under insider trading includes the person's firm and his partners and employees.

What is inside trading?  Insider trading is the trading of shares of a company by a person who has any information about that stock that can affect its shares.

Such a person buys shares in advance and sells them when the news comes. Due to which common investors have to suffer losses. This information is such information that can have a significant impact on the investor's decision to sell or buy such security, which has not yet been made available to the general public. This method of trading is completely illegal and can lead to both fine and jail if found guilty. If we talk about the definition, then ... The US stock market regulator US Securities and Exchange Commission (SEC) explains insider trading as follows. Selling or buying a security in violation of a fiduciary duty or other relationship of trust and confidence based on material non-public information about the security. Material information is information that can affect the decision to sell or buy a security. Non-public information is information that is not legally available to the general public. A person who has access to inside information has an unfair advantage over other investors who do not have access to it and may make an unfair profit over other similar investors. Illegal insider trading also involves passing on such illegal insider information to another.

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