Sebi is doing a rethink on its trading plans and may even scrap them

The regulator had introduced trading plans to provide an opportunity for those holding possible insider information to legitimately trade, without violating insider trading regulations

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,