NEW DELHI: Sebi on Wednesday eased the ‘trading plans’ framework for companies’ insiders who are in possession of unpublished price sensitive information. Trading plans enable individuals who have constant access to sensitive information to trade in securities in a compliant manner.
The Securities and Exchange Board of India (Sebi) made this move to provide a more structured and transparent approach for trading activities by insiders, ensuring that they abide by regulations and avoid any misuse of privileged information.
Under the revised framework, insiders can now adopt trading plans for up to two years, compared to the previous limit of one year. This extension allows for more flexibility in managing trades while still maintaining compliance with regulatory requirements.
Additionally, the new guidelines provide greater clarity on the disclosure and implementation of trading plans, making it easier for insiders to understand and adhere to the rules governing their trading activities.
The relaxed norms aim to enhance transparency and accountability among company insiders, fostering trust and confidence in the financial markets. By promoting ethical trading practices, Sebi seeks to uphold the integrity of the securities market and protect the interests of all investors.
