New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Register

    Question

    What is the purpose of including various categories of

    persons as connected persons as per SEBI (Prohibition  of  Insider  Trading) Regulations, 2015?
    A To establish a legal presumption of their connection with the company Correct Answer Incorrect Answer
    B To restrict their access to company information Correct Answer Incorrect Answer
    C To encourage them to become shareholders of the company Correct Answer Incorrect Answer
    D To provide them with employment opportunities within the company Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    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himself and the company whether temporary or permanent,that allows such person, directly or indirectly,access to unpublished price sensitive information or is reasonably expected to allow such access.

    Practice Next