Question

    What is the minimum duration that a trading plan must

    cover as per the provisions of SEBI (Prohibition of Insider Trading) Regulations?
    A Three months Correct Answer Incorrect Answer
    B Six months Correct Answer Incorrect Answer
    C Nine months Correct Answer Incorrect Answer
    D Twelve months Correct Answer Incorrect Answer
    E Eighteen months Correct Answer Incorrect Answer

    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 announcements  of  trading  plans  for  short  periods  of  time  rendering  meaningless  the  defence  of  a  reasonable time gap between the  decision to trade and the actual trade.  Hence it is felt that a reasonable time would be twelve month.

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