Answer-Under the SEBI (PIT) Regulations, 2015 and the code of conduct framed under it, a designated person...

The PIT code of conduct and the Regulations impose a CONTRA-TRADE restriction a designated person who buys securities must not ENTER into a contra sell trade within SIX MONTHS, and if he sells, must not buy within six months. This is designed to prevent trading on short-term non-public information and to deter manipulative round-trips. Where an unavoidable contra-trade arises, prior approval with the prescribed process applies. The six-month no-contra-trade rule is a standard PITcode-of-conduct numeric. It operates alongside pre-clearance, reporting and the trading-window.

Question

Under the SEBI (PI

T Regulations, 2015 and the code of conduct framed under it, a designated person who trades in the securities of the company is, as a general rule, restricted from entering into a transaction in the OPPOSITE direction (contra-trade) within ___ months of the earlier transaction:

A One year

B Two years

C Six months

D Three months

Practice Next