Under Regulation 18 of SEBI (Research Analysts) Regulations, 2014, what 'Quiet Periods' are mandated for research entities that acted as managers/co-managers or underwriters in a public offering of securities?

[ A ]Managers/co-managers cannot publish research reports or make public appearances for 40 days following IPO pricing, 10 days following FPO pricing, and 15 days before/after lock-up expiration; Underwriters cannot publish reports for 25 days from offering date.[ CORRECT ]

[ B ]Quiet periods require complete silence for 10 years following an IPO, with zero research reports permitted.

[ C ]There are no quiet periods in India; managers must publish 'Strong Buy' reports on the exact morning of the IPO.

[ D ]Quiet periods apply only during national general elections and expire within 1 hour of market opening.

Takeaway

Option A is correct: Managers/co-managers cannot publish research reports or make public appearances for 40 days following IPO pricing, 10 days following FPO pricing, and 15 days before/after lock-up expiration; Underwriters cannot publish reports for 25 days from offering date.

Derivation

To prevent underwriters and lead managers from artificially hyping newly issued stocks, Regulation 18 of SEBI (Research Analysts) Regulations enforces mandatory Quiet Periods during which research reports and public media appearances concerning the subject company are prohibited: (1) For Manager / Co-Manager: 40 calendar days immediately following the pricing date of an IPO, and 10 calendar days following the pricing date of an FPO. (2) For Underwriters: 25 calendar days from the first date of public offering. (3) Lock-up Quiet Period: 15 days prior to and 15 days after the expiration, waiver, or termination of a share lock-up agreement. This tests quiet period durations. The common trap is mixing up the 40-day IPO and 10-day FPO thresholds.

Why the others fail

B — Quiet periods require complete silence for 10 years following an IPO, with zero research reports permitted.

A 10-year quiet period is an absurd exaggeration; statutory quiet periods range from 10 to 40 days following public offerings.

C — There are no quiet periods in India; managers must publish 'Strong Buy' reports on the exact morning of the IPO.

Publishing promotional research during public offer pricing windows is strictly barred to prevent artificial market manipulation.

D — Quiet periods apply only during national general elections and expire within 1 hour of market opening.

Quiet periods are tied to specific securities market public offering timelines, having no connection to political election cycles.