Inside Information

For those who brag about being CMDs or directors on company boards have to be more careful about their identity in future. They must decide on the right time and place to disclose any information which is price sensitive. It is a must that they take care about dealing in securities of their own and affiliate companies. The recent Securities and Exchange Board notice to Hindustan Lever Ltd and its attempt to investigate the insider trading angle in Asian Paints has caught many promoters napping. Commented an observer, who tracks the corporate sector closely: 'I can assure you that many promoters are not aware of them being insiders. It is very sloppy on the promoters and their friends part to disclose price-sensitive information to their 'friends' and not expect the more aggressive capital market watchdog to intervene. It is high time promoters and key officials know that they are insiders.'