SEC - Disclosure requirements for directors dealing

sriranga · 1 SEC - Disclosure requirements for directors dealing Fri Dec 27, 2013 3:42 pm

sriranga

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27-Dec-2013 SEC Directive Re: Disclosure Requirements pertaining to dealings by Directors/CEOs

http://www.cse.lk/cmt/upload_cse_announcements/4201388135785_.pdf

http://www.sec.gov.lk/?p=5414&lang=en

K.Haputantri

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They should have applied this rule to all non-public share-holders as in the minimum public hoding rule. Not doing so leaves a wide loop-hole.

?How about a non-dependant son of a director acquiring shares in the company where the father is a director. He does not come under the rule but there is a possibility of profiting from insider info.

Also they should have covered other staff of the company, auditors and brokers as well under the disclosure rule to curb wide-spred use of insider info for undue profits.

?After all what is the punishment for non-disclosure by a Director. Another loop-hole.

If they do not intend to penalize non-disclosures under the rule, I propose a safeguard of lock-in procedure of shares for a considerable period after the date of disclosure.

janakatk

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Although it is with many loopholes, this move should be welcome now, later on SEC can evaluate the progress and do amend them accordingly

Jake Sully

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This is an interesting topic. I always see the directors' shareholdings (DRS) and sale/purchase disclosures before buying.
If any of you try to reconcile DRS of yearly AR to AR using the individual company disclosures provided in CSE website, for most of the companies it will not tally.
So I assume the staff in the CSE are doing just a clerical work of uploading the company disclosures after the senior officer writes 'pls circularize'. They don't even do a random check to see the completeness of the company disclosures.

It's not practical to extend the rules beyond directors and their immediate family.
I don't know about the other firms but big4 has their own independence declaration for its staff both firm wise and client wise. So any 'professional' staff should not be breaching their independence declarations.

If the directors still want to exploit the insider info then they can use an unrelated third party like in the case of Galleon Rajaratnam.

K.Haputantri

K.Haputantri

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@Jake Sully wrote:This is an interesting topic. I always see the directors' shareholdings (DRS) and sale/purchase disclosures before buying.
If any of you try to reconcile DRS of yearly AR to AR using the individual company disclosures provided in CSE website, for most of the companies it will not tally.
So I assume the staff in the CSE are doing just a clerical work of uploading the company disclosures after the senior officer writes 'pls circularize'. They don't even do a random check to see the completeness of the company disclosures.

It's not practical to extend the rules beyond directors and their immediate family.
I don't know about the other firms but big4 has their own independence declaration for its staff both firm wise and client wise. So any 'professional' staff should not be breaching their independence declarations.

If the directors still want to exploit the insider info then they can use an unrelated third party like in the case of Galleon Rajaratnam.

Absolutely right.

Involving CID in here, I think, would be very usefull to uncover insider dealings as the SEC behaves like a puppet, but they (CID) usually go after ppl opposed to powers that be. Those who support will get maximum protection.

Suppose all directors resort to timely reporting requirement under the rule, what the SEC is going to do with that info? Just file & do nothing? Allow insider dealers to go scott free as they have 'complied' with the regulation? If so, there is no purpose in the new regulation. Its not only meant for public knowledge but also for identifying insider dealings as well. SEC should getup from its deep slumber & work, because they are paid to perfor a mandate.

hettihewa

hettihewa

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Hello Haputantri all the best for the new year. Just for my curiosity , have you ever applied for a job at SEC and coudnt get in ? Because I have noticed again and again you are so quick to critisise SEC when ever some SEC related article is uploaded in the forum. As if you have some personal grudge against SEC. It doesnt look like an impartial openion as it is 100% bias all the time. It is possible that SEC never does anything good with all the experience and knowledge available to them. Hmmm thats even against the theory of probability. Everyting SEC does is bad or weak according to you and you seem to know it all. Must be quite clever I must say.

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SEC - Disclosure requirements for directors dealing

1 SEC - Disclosure requirements for directors dealing Fri Dec 27, 2013 3:42 pm

sriranga

2 Re: SEC - Disclosure requirements for directors dealing Fri Dec 27, 2013 5:44 pm

K.Haputantri

3 Re: SEC - Disclosure requirements for directors dealing Fri Dec 27, 2013 7:46 pm

janakatk

4 Re: SEC - Disclosure requirements for directors dealing Fri Dec 27, 2013 11:31 pm

Jake Sully

5 Re: SEC - Disclosure requirements for directors dealing Sat Dec 28, 2013 12:02 pm

K.Haputantri

6 Re: SEC - Disclosure requirements for directors dealing Wed Jan 01, 2014 10:40 pm

hettihewa

7 Re: SEC - Disclosure requirements for directors dealing

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