Ethical and Professional Standards Q125

0. Sanjay Babu is a research analyst at Waterhouse Investment Management firm. He covers Sat Corp, a technology services firm. Babu, during a visit to the firm to interview the business heads about future growth prospects, overhears a conversation between the CFO and VP-HR in the adjoining room, that the market regulator of India is privately interrogating the CEO‟s involvement in an insider trading case of Sat Corp. What is the best course of action for Babu to take?

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Option : B
Explanation : C is incorrect because when public dissemination is not possible, member must communicate only to the designated supervisory or compliance personnel and not to their teams. Refer to Standard II(A) Material Nonpublic Information.

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