In a significant regulatory development, the U.S. Securities and Exchange Commission (SEC) on Monday unveiled a proposal to tighten rules governing insider trading, a move that could have broad implications for corporate executives and institutional investors. The proposed changes aim to enhance transparency, reduce the potential for market manipulation, and restore investor confidence amid increasing market volatility and high-profile trading scandals. Under the new proposal, executives and corporate insiders would face increased disclosure requirements when making trades. The rule seeks to shorten the reporting window for insider transactions from the current two business days to just one and would require pre-planned trading programs to be publicly disclosed 30 days in advance. Additionally, the SEC is considering mandatory cooling-off periods to prevent opportunistic trading based on non-public information. SEC Chair Gary Gensler emphasized the need for stronger safeguards to ensure fair market practices. “Insider trading undermines investor trust and market integrity. These proposed rules are designed to close loopholes and bring more accountability to corporate insiders,” Gensler said in a press briefing. The announcement follows a series of high-profile insider trading cases involving executives at major tech and pharmaceutical firms. The SEC’s move also comes amid growing scrutiny from Congress and the public, who are calling for increased oversight of how corporate insiders capitalize on privileged information. Market analysts predict the proposed regulations could have a cooling effect on executive stock sales, potentially impacting short-term valuations of companies with frequent insider activity. “While the long-term impact may be positive for market fairness, companies could see short-term volatility as insiders adjust their trading behavior,” said Lisa Martinez, a senior equity strategist at JPMorgan. Corporate lobbyists, meanwhile, have expressed concern over the administrative burden and potential unintended consequences of the proposed rules. “We support transparency, but these changes could hinder legitimate financial planning by executives,” said a spokesperson for the Business Roundtable. The proposed rules are now open for a 60-day public comment period, after which the SEC will decide whether to implement them. If adopted, the changes would mark the most significant overhaul of insider trading regulations in over two decades. Investors and financial institutions are closely watching the developments, as the new measures could influence trading strategies, corporate disclosures, and overall market dynamics in the months ahead.