The SEC proposed a rule under Section 955 of the Dodd-Frank Act requiring companies to disclose whether employees and board members are permitted to hedge against declines in company’s stock – including stock granted as part of compensation.

Under the proposal, publicly held companies would be required to make the disclosures on their proxy statements or in a statement issued in conjunction with a board election. Comments on the proposal are due 60 days after the publication in the Federal Register.

Read the proposed rule: SEC-Release-No-33-9723_20150211-154654_1.pdf