SEBI's Working Group, formed in July 2023, has proposed crucial changes to 'Trading Plans' under the SEBI (Prohibition of Insider Trading) Regulations, 2015. Aimed at enhancing flexibility for those consistently in possession of Unpublished Price Sensitive Information (UPSI), the proposals include a shorter cool-off period, reduced coverage duration, and revamped disclosure formats. Public comments are invited until December 15, 2023.
The article emphasizes the underutilization of Trading Plans despite their introduction in 2015, substantiating its point with data showing minimal disclosures by insiders. Key recommendations include:
‣ Reducing the Cool-off Period
‣ Reducing the Coverage Period
‣ Eliminating the Blackout Period
‣ Introducing Price Limits
‣ Revisiting Contra-trade Restrictions
‣ Enforcing a Specific Timeline for Trading Plan Disclosure
