Question
What is the minimum duration that a trading plan must
cover as per the provisions of SEBI (Prohibition of Insider Trading) Regulations?Solution
Regulation 5 Trading Plans: (2) Such trading plan shall: (iii) entail trading for a period of not less than twelve months; NOTE: It is intended that it would be undesirable to have frequent announcementsĀ ofĀ tradingĀ plansĀ forĀ shortĀ periodsĀ ofĀ timeĀ renderingĀ meaninglessĀ theĀ defenceĀ ofĀ aĀ reasonable time gap between theĀ decision to trade and the actual trade.Ā Hence it is felt that a reasonable time would be twelve month.
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