SEBI seeks to cut reporting time for price-sensitve deals to 2 days

09 June 2008

Mumbai: The Securities and Exchange Board of India (SEBI) has proposed a reduction in the time taken for reporting price-sensitive transactions to companies and subsequently to the stock exchanges, from nine days to two working days.

The proposal, if implemented, would make dissemination of market-sensitive information such as allotment of shares or the acquisition or sale of shares among others by a director, shareholder or officer, having an access to such information, mandatory.

These information must be passed on to the company the day after receiving them while the company would provide it to the exchanges 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," the SEBI said in a consultative paper.

Under 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 exchanges regarding the developments.