Sebi disallows badla variants from July 2
Mumbai: The Sebi board has decided to ban all deferral products from July 2 this year.
However, it has allowed time till September 3 to liquidate outstanding deferred positions as of the current settlement, worth close to Rs 2,000 crore. No new deferred positions will be allowed from July 2.
While 414 scrips accounting for 95 per cent of trading volumes will be brought within the ambit of rolling settlements from July 2 onwards, all remaining scrips will be moved to a rolling mode from January 2, 2002.
The markets regulator seeks to crack down on inter-exchange arbitrage and has declared that from July 2, there will be a uniform Monday-to-Friday settlement cycle across all bourses for all scrips not in the rolling mode.
In addition to this price bands will be removed for all stocks in rolling mode and the global practice of having index-based circuit filters is also being introduced.
The Sebi board also paves the way for launch of options trading on individual stocks, while it has deferred the launch of futures on individual stocks. It has approved a code of conduct and a preventive framework against insider trading.
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Directors, co directors to disclose transactions exceeding 5000 shares
Mumbai: In another tightening move Sebi says that directors and other officers of companies who may be termed as 'insiders' will now have to continuously disclose to the market any sale or purchase by them of more than 5,000 shares or Rs 5 lakh worth of shares (whichever is lower) of the company they work for, within four days of the transaction.
This paves the way for the creation of a code of conduct to prevent insider trading as also for corporate disclosure practices for listed companies.
Shareholders with more than 5 per cent holding would also have to disclose their holding initially and make continuous disclosure for every 2 per cent change in shareholding.
Analysts, too, will no longer be privy to price sensitive information, as any such information passed on to them would have to be disclosed to the entire market.
Says LK Singhvi, Sebi’s senior executive director, the person largely responsible for drafting the code, "the disclosure would be first made to the company concerned within four days and then the company would disclose the same to the stock exchange."

The implementation of the code will be mandatory for listed companies and all categories of market intermediaries -- including stock exchanges, brokers, merchant bankers, mutual funds, depositories, financial institutions and professional firms, such as auditors, accountancy and legal firms.
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