But data and market feedback suggest trading plans are not very popular as the regulatory requirements are onerous, Sebi said in a consultation paper Friday.

The regulator recommended a number of flexibilities in the trading plan framework including reducing the minimum cooling-off period between the disclosure and implementation of the trading plan from six months to four months, doing away with the blackout period and reducing the minimum coverage period.

Company insiders such as senior management or key managerial personnel, who usually possess price-sensitive information, have a very small window for carrying out their trades for purposes such as creeping acquisitions and compliance with minimum public shareholding norms.

To facilitate adoption of trading plans, the markets regulator has recommended cutting down the minimum cool-off period between disclosure of the plan and its implementation from six months to four months.

While formulating a trading plan, the insider has to plan for at least 18 months, consisting of a mandatory six-month cool-off period before the execution of trades and the minimum coverage period of 12 months. The regulator has proposed reducing the minimum coverage period requirement to two months from twelve months.

Besides, it has suggested doing away with the requirement of a blackout period. A trading plan cannot entail trades for the period between the 20th trading day prior to the last day of any financial period for which results are required to be announced by the issuer of the securities and the second trading day after the disclosure of such financial results. This period is known as a blackout period.

The insider shall have flexibility, during formulation of the trading plan, to provide upper price limits for buy trades and lower price limits for sell trades. Sebi suggested that such price limit should be within +/-20 per cent of the closing price on the date of submission of the trading plan. Other recommendations include disclosure of the trading plans to stock exchanges to be done in two days from the date of approval and applicability of contra-trade provisions on trades executed under the trading plan as well.

In terms of disclosure of personal details of an insider in a trading plan, the regulator has suggested that the insider should make separate filings for the stock exchange (with personal details) and for the public (without personal details).

These suggestions are based on a Sebi working group’s findings. The regulator has sought comments by December 15.