New insider trading norms will add to compliance costs, hit hard smaller cos

Dec 13 2013, 09:46 IST
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SummaryExperts points out that while norms are a step in right direction, enforceability will be a challenge.

made available prior to the proposed trading. Disclosures can work against the company, especially if used by competitors, said Parekh.

The new norms are a step in the right direction, but enforcement is the key. They will only act as a deterrent if there is conviction in a few high-profile cases, said Shriram Subramanian, founder and managing director, InGovern, a corporate governance research firm. Even in the US, proving insider trading is always a challenge even when the authorities resort to measures such as tapping phone wires.

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