Stocks News
- Regulator to restrict execs' share trading
Date: 6-Feb-2007 Sources: (Shenzhen Daily)
THE government will issue guidelines at an appropriate time to enforce restrictions on share trading by senior executives at listed companies, domestic securities newspapers reported yesterday, citing an unnamed official at a regulatory agency.
The guidelines are aimed at preventing insider trading and stopping senior executives at listed firms selling more shares in their companies than allowed under current regulations, the official at the China Securities Regulatory Commission was cited as saying.
Under current regulations, senior executives are eligible to sell up to 25 percent of their stock holdings in their companies each year, but aren't allowed to sell the shares until one year after a company lists on a stock exchange.
The regulations also stipulate that senior executives must hold the shares they bought in their companies on the stock exchange for at least six months before selling them and wait for at least six months before buying shares in the company again.
The tougher approach comes after some senior executives sold shares in their companies in larger numbers or at a faster pace than allowed by the rules, the China Securities Journal said.
Sponsor Results:
