Sebi plans to tighten rules of pledging shares by promoter group entities

The move will act as a safeguard for non-promoter shareholders

The Securities and Exchange Board of India (Sebi) plans to tighten rules of pledging shares by promoter group entities. The market regulator will soon direct promoters whose pledged shares exceed 20 per cent of the equity capital to cite detailed reasons for this.

Sebi will also make changes to takeover code regulations so that any encumbrance on listed securities is disclosed. It is also likely to make key relaxations to the insider trading framework to ensure that the trading window closure does not clash with corporate activities of listed companies.

The regulator will also pave the way for allowing issuance of dual-class