Foreign Insiders Face SEC Stock Trade Disclosures Under Bill (2)

Foreign corporate insiders would have to reveal when they buy or sell company stock under a provision included in the House-passed defense authorization bill, a move backers describe as closing a loophole that hurts US investors.

The narrow section of the $901 billion defense bill amends US securities laws so overseas companies are required to report within two business days when officers and directors scoop up or dump shares, which is similar to insider reporting requirements for American businesses. The legislation now heads to the Senate.

The SEC rule is meant to deter insiders from making what appear to be ...