With an aim to rein in insider trading by promoters without investors™ knowledge,Sebi has decided to make it mandatory for all promoter entities to disclose any considerable purchase or sale of shares by them. The decision would remove a major anomaly from the Sebi™s insider trading prohibition regulations, which currently requires only directors and senior officials to disclose their dealings in the company share.
The proposed step was approved by the market regulator™s board last Friday and would soon come into effect after a notification for the amendment to existing regulations.
