SEBI has notified a stricter set of insider trading norms Sebi (Prohibition of Insider Trading) Regulations, 2015 on 15th January 2015 to check illicit transactions in shares of listed firms by management personnel and 'connected persons'.

The new norms, which will revamp nearly two-decade old regulations on insider trading and come into effect after four months, would also ensure that genuine trades are not impacted.

Insider trading refers to dealing in securities after having access to unpublished price sensitive information and such practices provide unfair advantage to the entity who has privy to such details.

Sebi has expanded the definition of 'Insider' to include persons connected on the basis of being in any contractual, fiduciary or employment relationship that allows such people access to unpublished price sensitive information (UPSI).

A connected person would be someone who is or has during the past six months prior to the concerned act has been associated with a company, directly or indirectly.