With an aim to rein in insider trading by promoters without investors' knowledge, market regulator Securities Exchange Board of India (SEBI) today asked them to disclose every considerable purchase of sale of shares by all promoter entities.
Currently, directors and top executives of listed companies are required to make these disclosures.
As per a decision taken by SEBI board today, all the promoters and persons who are part of the promoter group of a listed company would also be required to disclose their share dealings.
The promoters would be required to make initial disclosures relating to their shareholding at the time of becoming promoter or part of promoter group.
Besides, continuous disclosures would also be required whenever there is a change in their holdings exceeding Rs 5 lakh in value or 25,000 shares or 1% of total shareholding or voting rights, whichever is lower.
"Presently, similar disclosures are required to be made by the directors and officers of the company," Sebi said. New takeover regime: How do experts view it?
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