Ficci has asked the market regulator Securities and Exchange Board of India 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 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,