CS Executive · Capital Market and Securities Laws · Prohibition of Insider Trading
Which of the following is the statutory exception to the offence of communicating UPSI under section 15G of the SEBI Act, 1992?
Communication required in the ordinary course of business or under any law is the stated exception. Section 15G penalises communicating UPSI with or without a request, so lack of request, timing after market hours, or a family relationship does not protect the insider.
- ACommunication required in the ordinary course of business or under any lawCorrect
- BCommunication made only to relatives
- CCommunication made after market hours
- DCommunication made without any request from the recipient
Explanation
Section 15G(ii) excepts communication required in the ordinary course of business or under any law. Communication is an offence whether or not requested, and relatives or timing give no exemption.
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