Limitations on Trading By Research Analyst

Regulation 16: Limitations on trading by Independent Research Analysts

(1) Personal trading activities of the research analyst shall be recorded.
(2) Independent research analysts or their associates shall not deal or trade in securities that the research analyst recommends or follows within thirty days before and five days after the publication of a research report.
(3) Independent research analysts or their associates shall not deal or trade directly or indirectly in securities that he reviews in a manner contrary to his given recommendation.
(4) Independent research analysts or their associate shall not purchase or receive securities of the issuer before the issuer’s initial public offering, if the issuer is principally engaged in the same types of business as companies that the research analyst follows or recommends.
(5) Notwithstanding anything contained in sub-regulations (2) to (4), such restrictions to trade or deal in securities may not apply in case of significant news or event concerning the subject company or based upon an unanticipated significant change in the personal financial circumstances of the research analyst.