Trading Plan under SEBI (Prohibition of Insider Trading) Regulations, 2015

According to Regulation 5 of SEBI (Prohibition of Insider Trading) Regulations, 2015,
an insider shall be entitled to formulate a trading plan and present it to the compliance
officer for approval and public disclosure pursuant to which trades may be carried out on
his behalf in accordance with such plan.

The trading plan shall comply with the following requirements:

(a) Trading can commence only after 6 months from public disclosure of plan.

(b) No trading between 20th trading day prior to closure of financial period and 2nd trading day after disclosure of financial results.

(c) It shall be submitted for a minimum period of 12 months.

(d) No overlapping of plan with the existing plan submitted by Insider.

(e) It shall setup either the value of trades to be effected or the number of securities to be traded along with nature of the trade and the intervals at, or dates on which such trades shall be affected.

(f) The trading plan shall not entail trading in securities for market abuse. 

(g) The compliance officer shall review the trading plan to assess whether the plan would have any potential for violation of the PIT regulations and shall be entitled to seek such express undertakings as may be necessary to enable such assessment.

(h) Compliance Officer to approve and monitor the implementation of the plan.

(i) The trading plan once approved shall be irrevocable and the insider shall mandatorily have to implement the plan, without being entitled to either deviate from it or to execute any trades in the securities outside the scope of the trading plan.
(Except in few cases like where insider is in possession of price sensitive information at the time of formulation of the plan and such information has not become generally available at the time of the commencement of implementation).

(j) Upon approval of the trading plan, Compliance Officer shall notify the plan to the stock exchanges on which the securities are listed.
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