Thursday, April 2, 2020
Promoters and other insiders won’t be able to buy shares of companies between April 1 and up to June 30 — a window that’s wider than normal as they have been given extra time to report earnings because of the COVID-19 lockdown. Sebi has rejected promoters’ requests to exempt them from extending trading restrictions that apply at the time of results.
The rationale for not extending the date for trading window closure is that there may be firms wherein the financial results may have reached a stage that, if not precise, may be indicative of the actual outcome. consequently, whether the same would be positive/negative, which may amount to UPSI (unpublished price sensitive information). This could lead to insider trading, as per Sebi official statement.
