New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Can an insider deviate from the approved trading plan,

    (As per Reg 5 of SEBI (Prohibition  of  Insider Trading) Regulations, 2015)?
    A Yes, with prior intimation to the compliance officer Correct Answer Incorrect Answer
    B Yes, with the approval of the stock exchanges Correct Answer Incorrect Answer
    C No, the trading plan is irrevocable and must be implemented as approved Correct Answer Incorrect Answer
    D No, unless there is a significant change in market conditions Correct Answer Incorrect Answer
    E Depends on the situation Correct Answer Incorrect Answer

    Solution

    As per Reg 5(4)-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 trade in the securities outside the scope of the trading plan. Provided that the implementation of the trading plan shall not be commenced if any unpublished price sensitive information in possession of the insider at the time of formulation of the plan has not become generally available at the time of the commencement of implementation and in such event the compliance officer shall confirm that the commencement ought to be deferred until such unpublished price sensitive information becomes generally available information so as to avoid a violation of sub-regulation (1) of regulation 4.

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