Since it's raining IPOs, just wanted to understand what are policies of different law firms on direct equity investing? Is it allowed or are there some restrictions? Have heard that few lala firms don't allow direct equity investing.
Generally law firms have trading policy which has a threshold, below which you don't need any permission. The value can vary from 1-2 lakhs (annually) depending on the firm.
Further, some firms say that they have a trading policy and one can get the permission if they want to trade in a security but most of the time the permission is not granted.
To sum it up: equity investing is allowed but with prior permission which in most firms is not granted easily.
if you are working in capital markets, bankers usually make you sign agreements bearing reference to the fact that indulging in trades and portfolio investments (for shares pertaining to deal sensitive or pre-known market information) is fraudulent blah blah blah. In all instances, avoid doing so if you are not sure of what the dire consequencies could be. Thank you.
Yes, this is true. You cannot trade in companies where you have been involved in transactions.
To answer your question, firm does not check your trades. Your contract provides for clauses that you will abide with the firm's trading polices which includes taking prior permission.
Because firms are not checking. Nor will they, only those in Capital Markets teams need to be careful. All other teams, no one is asking/no one is informing.
Further, some firms say that they have a trading policy and one can get the permission if they want to trade in a security but most of the time the permission is not granted.
To sum it up: equity investing is allowed but with prior permission which in most firms is not granted easily.
To answer your question, firm does not check your trades. Your contract provides for clauses that you will abide with the firm's trading polices which includes taking prior permission.
Nonsense 18 yr old nibba nibbi prepare for clat to become a suited slave.
Mutual Funds are allowed though for everyone.