Sebi

Topics: Stock market, Proposals, Stock Pages: 5 (1309 words) Published: June 13, 2013
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Nebody knows about the Sebi's latest Announce .....?CNBC-TV18 has learnt from sources that Sebi is likely to propose shortswing rule in India. The move restricts company insiders from making short-termprofit at the company’s expense.It is a move that could potentially have a big impact on promoters of listed companies. Market regulator Sebi is proposing to put in place a new rule-theshort swing rule- in India. This is similar to one that exists in the USA.The rule prevents company insiders, who have greater access to materialinformation, from taking advantage of the information to make short-term profits.So, Sebi proposes that company insiders buying and selling their company's stock within a 6-month period return the money they make to the company. As of now,this is just a consultative paper and the regulator has invited feedback to thisproposal.Sources added that the move proposes insiders return profits frombuying and selling the company’s stock. It proposes a tenor of six months for theshort swing rule.It has circulated a paper on short swing profit regulations.Sebi has proposed last-in-first-out method to determine the sixmonth period and the move is intended to check insider trading

. The designatedinsider will include all key management personnel and directors of companies aswell as officials who own above 10% stake in the company. Sebi says that any officer who buys and sells shares of a companywithin six-months will have to return those profits to the company, which meansthat he cannot buy and sell shares

within six months and make a profit on them.If he makes, he will return the profit.Who cannot do these transactions or who will be brought under the ambit of thisshort swing rule?]It is a designated insider and a designated insider goes beyond thethreshold of any person who holds 10%. An insider is basically defined as a person

who would own more than 10% shares in a company. But here it says a designatedinsider would include all key management personnel.It would include all directors of the company, all officers of thecompany who are beneficial owners of 10% or more stake in that company. So, adesignated insider concept seems to be a far wider definition. They have given it afar wider definition than what an insider would be who owns only 10% in thatcompany. It is a draft proposal. They have invited suggestions to these proposals. The future of stock exchanges

The future of stock trading appears to be electronic, as competition iscontinually growing between the remaining traditionalNew York Stock Exchange[->3] specialist[->4]system against the relatively new, allElectronic CommunicationsHYPERLINK...
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