Indian capital market regulator SEBI is planning to make it mandatory for companies to disclose their monthly sales, turnover / production figures first to stock exchanges before giving it to industry associations / media. Filing these reports with stock exchanges will facilitate uniform dissemination of such information, which has a bearing on stock prices, to all investors.
Now, rules don't specify how companies should publish this data. While some companies file this data first with the bourses, many others send it to industrial bodies;
F or instance, Automobile companies send their monthly sales data to Society of Indian Automobile Manufacturers (SIAM),
Cement makers give the monthly output figures to Cement Manufacturers Association (CMA),
Telecom service providers submit it to Cellular Operators Association of India (COAI),
CDMA operators’ association AUSPI (Association of Unified Telecom Service Providers of India).
Some companies upload it on their web sites or individually send it to television channels and news agencies, print medias while a few of them do not reveal this data at all on a monthly basis.
SEBI feels the absence of rules in this regard has made it easy for some in the market to gain access to this information before it is made public, amounting to violation of insider trading norms.
According to said a top SEBI official, “It is a price sensitive information & should be disclosed to the stock exchanges before it is given to any other body/media. Any increase/decrease in monthly sales figures is an indicator of the performance of the company which certainly has bearing on its profitability”
Insider trading norms..!
At present, insider trading norms mandate continuous and immediate disclosure of share price sensitive information by companies to stock exchanges and a dissemination of the same to investors through public announcements.
Likewise, Clause 36 of the Listing Agreement mandates companies to inform all price sensitive information and material events which have a bearing on the performance or operations of the company to the exchanges.
SEBI’s move is aimed at providing a level playing field for investors as anyone who wishes to get information about the company is more likely to look up for the same on the websites of the stock exchanges rather than on the websites of any other body.
SrC: ET
Now, rules don't specify how companies should publish this data. While some companies file this data first with the bourses, many others send it to industrial bodies;
F or instance, Automobile companies send their monthly sales data to Society of Indian Automobile Manufacturers (SIAM),
Cement makers give the monthly output figures to Cement Manufacturers Association (CMA),
Telecom service providers submit it to Cellular Operators Association of India (COAI),
CDMA operators’ association AUSPI (Association of Unified Telecom Service Providers of India).
Some companies upload it on their web sites or individually send it to television channels and news agencies, print medias while a few of them do not reveal this data at all on a monthly basis.
SEBI feels the absence of rules in this regard has made it easy for some in the market to gain access to this information before it is made public, amounting to violation of insider trading norms.
According to said a top SEBI official, “It is a price sensitive information & should be disclosed to the stock exchanges before it is given to any other body/media. Any increase/decrease in monthly sales figures is an indicator of the performance of the company which certainly has bearing on its profitability”
Insider trading norms..!
At present, insider trading norms mandate continuous and immediate disclosure of share price sensitive information by companies to stock exchanges and a dissemination of the same to investors through public announcements.
Likewise, Clause 36 of the Listing Agreement mandates companies to inform all price sensitive information and material events which have a bearing on the performance or operations of the company to the exchanges.
SEBI’s move is aimed at providing a level playing field for investors as anyone who wishes to get information about the company is more likely to look up for the same on the websites of the stock exchanges rather than on the websites of any other body.
SrC: ET
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