The proposal, if implemented, would make it necessary for a director, shareholder or officer, having an access to the market-sensitive information like allotment of shares or the acquisition or sale of shares among others, to disseminate the information to company and stock exchange within two days of the transactions as against the current practice of total of nine days.
According to the proposal, these information must be passed to company the next day of such transactions. After receiving the information, company would provide it to exchange the next day.
"In line with Sebi (Substantial Acquisition of Shares and Takeover) Regulations, 1997, it is proposed that the time gap between the date of transaction and the date of dissemination of the information by the stock exchange may be reduced from nine days to two working days," Sebi said in a consultative paper.
Under the present regulations, the shareholder of a listed company is required to disclose to the company information regarding the shareholding or voting rights within four working days of receipt of intimation of allotment of shares or the acquisition or sale of shares etc.
The company has to, within five days, inform the stock exchange regarding the developments.
