INSUBCONTINENT EXCLUSIVE:
A seemingly innocuous clause in the new, tighter insider trading regulations that took effect on April 1 is giving Indian companies a hard
time in the ongoing earnings season
What had gone unnoticed was that the regulator also included share pledging by promoters in this window.
Company promoters looking to raise
money by pledging shares have been caught off guard in the current earnings season, said experts.
Earlier, listed companies were required to
According to the new rules, trading restrictions for company insiders start from the end of every quarter and are lifted 48 hours after the
Developers, a real estate firm.
All listed companies are required to specify the period in which the trading window is closed for promoters,
directors and employees when they are in possession of unpublished price-sensitive information
The trading window is also applicable to auditors, accountancy firms, law firms, analysts and consultants who are assisting or advising the
It stays closed during announcements such as financial results, dividends, mergers, takeovers, buybacks, public and rights issues and major
Previously, only buying and selling of shares by these individuals or entities constituted insider trading, not pledging.
Most companies
that came to the fore in the wake of the ILFS default.
Some lawyers said the regulator may not have taken into account the full impact of
Partners.
Sebi had tightened insider trading rules based on the recommendations of a committee headed by former law secretary TK Viswanathan
Results are fairly critical information
results of several blue-chip companies being leaked last year on social media platforms such as WhatsApp before official announcements to
period norms by permitting pledge of shares with a scheduled commercial bank or systemically important NBFC (nonbanking finance company) or
