FICCI has asked the market regulator SEBI to retain the announcement
of bonus and rights issue within the ambit of its insider trading
policy, as stock prices are too sensitive.
In a memorandum to Securities and Exchange Board of India (SEBI) on
the proposed amendments to the SEBI (Prohibition of Insider Trading)
Regulations, 1992, FICCI, while welcoming the proposal that the
regulations should not freeze legitimate trading by the Specified
Persons, feels that the management of a company should be authorised
to decide and create window freeze.
The proposal that companies should either designate a single broker,
through whom all transactions in stock by insiders be completed or
require insiders to use only one
designated broker who will agree to the procedures set out by the
company, does not go well with FICCI.
"We feel that these steps may not help in better reporting or
monitoring. In case of big companies with large number of employees
spread across various geographical locations, it is not feasible to
appoint designated brokers. Also, there would
be employees registered to carry out on-line trading," FICCI said.
FICCI, however, favours the SEBI proposal of widening the scope of
term 'shares' to 'securities' thereby including Equity Derivatives for
the purpose of disclosures.
"This is well-justified step since after introduction of Derivatives
in 2000, inclusion of derivatives under the Regulations was very
important so as to bring all dealings in
securities with in the ambit of the regulations," FICCI said.
of bonus and rights issue within the ambit of its insider trading
policy, as stock prices are too sensitive.
In a memorandum to Securities and Exchange Board of India (SEBI) on
the proposed amendments to the SEBI (Prohibition of Insider Trading)
Regulations, 1992, FICCI, while welcoming the proposal that the
regulations should not freeze legitimate trading by the Specified
Persons, feels that the management of a company should be authorised
to decide and create window freeze.
The proposal that companies should either designate a single broker,
through whom all transactions in stock by insiders be completed or
require insiders to use only one
designated broker who will agree to the procedures set out by the
company, does not go well with FICCI.
"We feel that these steps may not help in better reporting or
monitoring. In case of big companies with large number of employees
spread across various geographical locations, it is not feasible to
appoint designated brokers. Also, there would
be employees registered to carry out on-line trading," FICCI said.
FICCI, however, favours the SEBI proposal of widening the scope of
term 'shares' to 'securities' thereby including Equity Derivatives for
the purpose of disclosures.
"This is well-justified step since after introduction of Derivatives
in 2000, inclusion of derivatives under the Regulations was very
important so as to bring all dealings in
securities with in the ambit of the regulations," FICCI said.
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