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The Securities and Exchange Board India (Sebi) is doing a rethink on its trading plans that were introduced under the Sebi (Prohibition of Insider Trading) Regulations, 2015. One of the options being considered is to scrap the plans altogether. The concept has not taken off in earnest, with few companies stepping forward to formulate these plans since it was introduced more than two-and-a-half years ago. There are several guidelines that have made these plans unpopular. For instance, the trading plan has to cover a period of at least 12 months and cannot be altered once disclosed. "Trading plans, as they exist, are quite rigid in the way they are structured. Once a person commits to buying or selling shares, there's no option but to execute the trades. The plan has to be laid out six months before the actual trades are done and if there's significant market movement executing the trades may become commercially unviable," said Sudhir Bassi, executive director, Khaitan & Co.The ...

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