Question

A company is about to declare a bonus issue, an item of unpublished price sensitive information not yet generally available. A promoter buys shares of the company before the announcement, intending to profit from the price rise. Under the SEBI (PI

  • T Regulations, 2015, the promoter's action is:
A Perfectly lawful as the promoter may always trade
B Regulated only if he sells rather than buys
C Allowed if the trade is below a small value
D Prohibited as insider trading by trading while in possession of unpublished price sensitive information
E None of these
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