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    Question

    As per Reg 7J of SEBI (Prohibition  of  Insider Trading) Regulations, 2015, what is the effect of a term in an agreement or Code of Conduct that precludes a person, other than an advocate, from submitting information to the Board? 

    A The term is valid and enforceable. Correct Answer Incorrect Answer
    B The term is void and unenforceable. Correct Answer Incorrect Answer
    C The term is valid unless the violation of securities laws is imminent. Correct Answer Incorrect Answer
    D The term is void only for written agreements, not oral agreements. Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    As per Reg 7J. (1) Any term in an agreement(oral or written) or Code of Conduct,is void in so far as it purports to preclude any person, other than an advocate,from submitting to the Board information relating to the violation of the securities laws that has occurred, is occurring or has a reasonable belief that it would occur.

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