The Securities and Exchange Board of India (SEBI) on November 24, 2023, issued a Consultation Paper on providing flexibility in Provisions relating to ‘Trading Plans’ under the SEBI (Prohibition of Insider Trading) Regulations, 2015.
The following highlights have been stated:
• Since the introduction of trading plans in 2015, data and market feedback suggest that the current regulatory requirements Consultation paper on providing flexibility in provisions relating to ‘Trading Plans’ under the SEBI (Prohibition of Insider Trading) Regulations, 2015 Page 2 of 5 in respect of trading plans are onerous and consequently, trading plans are not very popular.
• The Working Group was mandated to review provisions of the trading plan under PIT Regulations, 2015 so as to provide flexibility to facilitate adoption of trading plans by persons who may be perpetually in possession of Unpublished Price Sensitive Information. The Working Group comprised of officials of SEBI, stock exchanges and market participants.
• As per Regulation 5 (5) of PIT Regulations, upon approval of the trading plan, the compliance officer shall notify the TP of the stock exchanges on which the securities of the Company are listed. Such disclosure of TP enables investors in the market at large to make informed decisions. While there is no prescribed format for disclosure of the TP, it typically contains the personal details (Name and Designation) of the insider along with the trades planned to be undertaken.
Comments may be sent by email to [email protected] by December 15, 2023, only in the prescribed format. While responding, kindly mention the subject as “Comments on the consultation paper on providing flexibility in Provisions relating to ‘Trading Plans’ under the SEBI (Prohibition of Insider Trading) Regulations, 2015”.
Please refer to the document attached for more details.
