SEC Toughens Insider Trading Rules for Execs, Limits Protections

The SEC is restricting when top executives can unload company shares and is forcing them to disclose more information about their planned stock sales as part of a renewed effort to combat insider trading.

The Securities and Exchange Commission on Wednesday voted unanimously to adopt rulesthat will require company directors and officers to wait at least 90 days between when they schedule a trade and sell their shares, about a month less than initially proposed. Companies also will have to report on their executives’ use of trading plans in quarterly reports.

The rules, if properly followed, give executives a ...