The U.S. Securities and Exchange Commission (SEC) announced on Monday a sweeping proposal to tighten disclosure requirements surrounding insider trading by corporate executives and directors. The proposed changes, which are aimed at bolstering investor confidence and market transparency, could have significant implications for trading strategies and corporate behavior, particularly in the tech and financial sectors. Under the new rules, executives would be required to report stock sales or purchases within one business day, a sharp acceleration from the current two-day window. Additionally, companies would need to disclose the adoption, modification, or termination of so-called Rule 10b5-1 trading plans — prearranged stock sale programs that have drawn criticism for alleged abuse. SEC Chair Gary Gensler said in a statement, "Investors deserve to know when and why insiders are trading their own company’s stock. These proposed amendments are designed to provide greater transparency and reduce the risk of insider advantage." Market reaction was swift. Shares of several high-profile tech firms, including Tesla, Meta, and Nvidia, dipped in early trading Tuesday, as investors digested the potential impact on executive selling patterns. Financial institutions also saw modest declines, with analysts cautioning that more stringent reporting requirements could lead to more cautious insider transactions, potentially impacting liquidity. Corporate governance experts lauded the move as a necessary step toward restoring public trust, especially after recent high-profile cases of suspected insider trading. However, some business groups warned the rules could have unintended consequences. "While we support transparency, mandating same-day reporting could create logistical challenges and discourage executives from participating in equity compensation programs," said Jennifer Gardner, senior counsel at the U.S. Chamber of Commerce. The SEC opened a 60-day public comment period, after which the agency will decide whether to finalize the rules. Should they become law, companies would likely need to update internal compliance programs and invest in real-time reporting infrastructure to meet the tighter deadlines. Analysts say the proposal adds a new layer of regulatory scrutiny at a time when markets are already grappling with inflation concerns, interest rate uncertainty, and geopolitical tensions. "This is another reminder that regulatory risk is back on the table for U.S. equities," said Mark Stevens, chief equity strategist at Boston Capital Partners. If finalized, the new rules would mark one of the most significant changes to insider trading oversight in two decades, potentially setting a new global benchmark for corporate disclosure practices.