Market regulator Sebi proposes easing trading plans for company insiders - MMJC

The Securities and Exchange Board of India (Sebi) has proposed a significant revamp of the “trading plan” framework, which would allow insiders to trade their company shares with greater flexibility. The proposed changes include the elimination of the “black-out” period, a reduction in the cool-off period, and relatively lenient price limits.

As employee stock options form a significant part of the compensation for key managerial personnel (KMPs), industry experts believe these changes would provide relief for senior management. Makarand M Joshi, founder of MMJC & Associates, said: “Finally, a breather is proposed for all CXOs possessing wealth but unable to unlock it due to stringent norms under PIT (prohibition of insider trading) regulations. This will encourage CXOs to participate in companies’ ESOP schemes, as there are currently many restrictions on share selling.”

Views shared by the Partner of MMJC – Makarand Joshi and Published in the Business Standard.

https://www.business-standard.com/markets/news/market-regulator-sebi-plans-overhaul-of-insider-trading-plan-framework-123112400982_1.html