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 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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