The Securities and Exchange Board of India (SEBI) on 19 March had relaxed certain listing disclosure obligations to provide a breather to companies comply amid coronavirus-related shutdowns. Among other things, the markets regulator allowed listed companies to submit their March-ended quarter and fiscal 2019-20 results by 30 June, instead of 15 May.
As a consequence, the trading window will have to be closed for promoters and management from 1 April till 48 hours after the declaration of the fourth-quarter results.
An Economic Times report said that SEBI has rejected promoters' requests to exempt them from extending trading restrictions that apply at the time of results. This is because extending the trading window closure could lead to insider trading as their firms will have access to unpublished financials that may have positive/negative outcome.
Listed companies are required to specify the period during which the trading window is closed for promoters, directors and employees when they are in possession of unpublished price-sensitive information such as financial results, dividends, mergers, takeovers, buybacks, public and rights issues and major expansion plans.
It is also closed for auditors, accountancy firms, law firms, analysts and consultants who are assisting or advising the company.