Sponsor directors now must make irrevocable order for share trade
Star Business Report
Sponsor directors of listed companies will have to make irrevocable order for transaction of shares at prevailing market price and submit details of it to the Securities and Exchange Commission (SEC) and bourses within one week of execution of the order.The SEC issued the order yesterday to prevent sponsor directors making buy/sale order at undervalued rate which affects the secondary market. It is alleged that sponsor directors make buy/sale order at a rate much lower than the prevailing market price. The announcement goes online to all brokers and leads to volatility in prices. After the market repercussion, the sponsor directors revoke the order without citing any reason. The capital market watchdog took the decision to protect legal rights of the shareholders and keep the market free from manipulation.
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