DIPAM Implements Trading Ban to Safeguard Market Integrity

DIPAM instructs officials to abstain from trading in public sector shares due to potential access to sensitive information. Officials must declare holdings and seek approval for liquidation. DIPAM oversees government equity, minority stake sales, and privatization. The initiative safeguards against misuse of information as it manages substantial share sales.

The Department of Investment and Public Asset Management (DIPAM) has issued a directive forbidding its officials from trading in shares of public sector companies. This move comes amid concerns that the officials may have access to market-sensitive information due to their positions, an official disclosed.

According to an internal order, every officer joining DIPAM must declare their shareholdings in public sector enterprises. Any shares held can only be liquidated with proper authorization. DIPAM, functioning under the Ministry of Finance, plays a crucial role in managing government equity, minority stake sales, and privatization efforts.

The government's stance is aimed at preventing the misuse of privileged information that could influence share prices. It maintains that while DIPAM endeavors to maximize the value of CPSE shares, transparency and integrity are paramount. The department handles the sale of central government equity through various channels and advises on financial restructuring to draw investment to CPSEs.

(With inputs from agencies.)