A blackout period is a temporary restriction when trading, transactions, or actions are frozen, usually to prevent insider misuse or ensure fairness.
Zerodha (Flat Rs 20 Per Trade)
Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.
A blackout period is a temporary restriction during which certain activities, transactions, or communications are not allowed. It is often used in finance, corporate governance, and compliance contexts to ensure fairness, avoid insider trading, and maintain transparency.
Corporate/Stock Market Context
Companies enforce blackout periods before the release of financial results or major announcements.
Employees, directors, and insiders are restricted from buying or selling company shares to prevent misuse of unpublished price-sensitive information (UPSI).
Employee Benefits/Pension Plans
A blackout period may occur when employee benefit plans (like retirement accounts) are changing administrators.
During this time, employees temporarily cannot change their investments or withdraw funds.
General Usage
It refers to any timeframe where specific actions (trading, communication, or policy changes) are frozen until the blackout lifts.
Answered on