The Securities and Exchange Board of India (Sebi)’s new norms to prevent insider trading in listed companies are likely to lead to some hurdles for companies.The regulations also cover third-party entities. The regulator has also tried to reduce ambiguity around due-diligence activities. “Companies will, by law, be entitled to require third-party connected persons to disclose their trading and holdings in securities of the company,” stated the markets regulator on Wednesday evening.

Source - http://www.business-standard.com