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NTPC asks directors to not trade in its shares till earnings announcement

State-owned NTPC has asked its directors and employees not to deal in the company's shares for a 10-day period as the quarterly financial results are to be announced on January 28.

NTPC has become the first major listed company to make a public announcement about 'trading window' closure after market watchdog Securities and Exchange Board of India (Sebi) recently sought strict adherence to these guidelines, which have been in place for many years.

Pursuant to a Sebi observation about many companies not following these guidelines, which prohibit trading by company promoters and senior executives close to key events like financial results, deals and dividend announcements, stock exchanges have asked listed firms to ensure strict adherence.

The stock exchanges have also been asked to inform Sebi about non-compliance of companies to various provisions of Listing Agreement with effect from January 1, 2014.

In a regulatory filing, NTPC said the trading window of NTPC for designated employees shall remain close from January 21 to January 30, and it includes both days.

"During this period, Directors, Designated Employees and their dependents are required not to deal in the shares of NTPC," the company said.

On January 28, NTPC's board of directors is to consider the company's un-audited financial results for the quarter and nine months period ended on December 31, 2013.

The board would also consider declaration of interim dividend on January 28, the filing said.

NTPC is the country's largest power producer with an installed generation capacity of more than 42,400 MW.

Shares in NTPC, on Friday, ended at Rs 131.60 apiece on the BSE, about 1 per cent lower from the previous close.