MUMBAI: Market regulator SEBI has clarified on the interpretation of certain amendments in the insider trading norms, in response to a few queries
from companies. The regulator said the six-month restriction for directors and employees to transact in shares of a company is only intended for trading on stock exchanges and not applicable to the exercise of employee stock options (ESOPs) and sale of these shares. Sebi noted that employees can subscribe to ESOPs, even if they have sold shares during the previous six months, but added that the restriction on market purchases for the next six months would be applicable, once shares bought through ESOPs are sold. The regulator also clarified that employees can sell shares in case of emergency on approval from the company’s compliance department. It also said employees are free to trade in Nifty or Sensex futures, subject to the company’s code of conduct. In response to whether the minimum holding period of 30 days while buying shares through an initial public issue would be applicable to bonus, rights share issues and ESOPs, Sebi said this restriction is limited to IPOs. It added that the company is free to decide the holding period for the others issue of shares.
from companies. The regulator said the six-month restriction for directors and employees to transact in shares of a company is only intended for trading on stock exchanges and not applicable to the exercise of employee stock options (ESOPs) and sale of these shares. Sebi noted that employees can subscribe to ESOPs, even if they have sold shares during the previous six months, but added that the restriction on market purchases for the next six months would be applicable, once shares bought through ESOPs are sold. The regulator also clarified that employees can sell shares in case of emergency on approval from the company’s compliance department. It also said employees are free to trade in Nifty or Sensex futures, subject to the company’s code of conduct. In response to whether the minimum holding period of 30 days while buying shares through an initial public issue would be applicable to bonus, rights share issues and ESOPs, Sebi said this restriction is limited to IPOs. It added that the company is free to decide the holding period for the others issue of shares.
Posts
No comments:
Post a Comment