InvestorQ : What has the latest SEBI Board meet made changes on the preferential offer and the insider trading front?
sara Kunju made post

What has the latest SEBI Board meet made changes on the preferential offer and the insider trading front?

Answer
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3 months ago


The SEBI Board did some interesting tweaks on the preferential offer front. The floor price for preferential issue has been reduced from 26 weeks to just about 12 weeks. This reduced time frame will ensure that greater weightage to the more recent price and that would be a better benchmark at a time when stock market prices are extremely volatile.

There were some important changes on the insider trading front. For example, all companies will now be required to tabulate and maintain a detailed digital database containing the nature of unpublished price sensitive information and the names of persons having access to and authorised to share such information.

There are a few advantages in this insider trading rule change. There is a complete audit trail of all information sharing by companies at any point of time and this can automate sharing of information as well as the entire process of insider trading regulation implementation and reporting to stock exchanges. This will ensure transparency and better disclosure.