SEBI proposes a trading plan for insiders to sell company stock

Top executives at listed companies often possess unpublished price sensitive information (UPSI). To prevent insider trading, SEBI has rules that prohibit insiders from selling stock while in possession of UPSI. However, this poses a challenge for executives who receive a significant portion of their compensation in company stock. To address this, SEBI offers a trading plan, which is an automated selling plan. Executives can create a predetermined plan to sell a certain number of shares at regular intervals. This ensures compliance with SEBI regulations and allows insiders to sell their stock without being accused of insider trading.