SEBI-APPOINTED
PANEL PROPOSES STRICTER INSIDER TRADING NORMS
In wide-ranging reforms of insider trading norms, a Sebi-appointed panel today proposed bringing in public servants handling share price-sensitive information under its purview. It also put the onus on the insiders to prove they have not breached any law.
The new norms, which would also apply to mutual funds and trusts issuing
securities or schemes that get listed on stock exchanges, would also require
companies to seek entire holdings of all employees and third-party connected
persons. Besides, all trades by promoters, employees, directors and their
immediate relatives would be required to be disclosed to the company.
The panel, chaired by Justice N K Sodhi, was set up by Sebi in March this year
to review nearly two decade-old insider trading norms and included experts from
various sectors.
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