Mumbai, Apr 2 (IANS): In a bid to curb insider trading, security market regulator, Sebi has reportedly prohibited promoters and insiders from buying company shares till June 30, as companies have been given extra time to report earnings with the stock exchanges.

Companies have received additional time to submit their quarterly and annual results in view of the coronavirus crisis and the ongoing lockdown. It means the trading window will have to be closed for promoters and the management from April 1 till 48 hours after declaration of quarterly results.

Sources said, the Securities and Exchange Board of India (Sebi) has turned down request of several promoters to exempt them from extending trading restrictions that apply at the time of results.

An official source said that the rationale behind the decision is that there may be firms in which the financial results may have reached such a stage which although not accurate, may be indicative of the eventual outcome. Such information may be considered a price sensitive information, he added.

Disclosure norms of the regulator require companies to submit their annual financial results to stock exchanges within 60 days of the end of the financial year.

Experts, however, said that the curbs may be relaxed. Several sector experts were also of the view that the move can be detrimental as the market and share prices are going through turbulent times and are at multi-year lows.

Promoters are well positioned to buy shares and cushion the bear run, and the move would keep the market from this very support, they said.