The Securities and Exchange Board of India has issued show cause notices to key management personnel of the fund and its trustees in this case. The capital markets regulator issued notices after the final report submitted by audit firm Choksi and Choksi, which indicated that the fund doled out favours to certain companies it had invested in by not exercising the put option, despite its risk management committee advising the Chief Investment Officer to do so.
A put option is a contract that gives the holder the right to sell a certain number of securities at a predetermined price, called the strike price, before the option’s expiry.
What kind of Put Contract is this? It can be exercised before expiry? Not the Indian style?