If a segregated portfolio is created, it becomes effective from
A
The day of the credit event
B
Seven days prior to the credit event
C
One year from the date of the credit event
D
The day the security was bought in the portfolio
Correct Option:
A
Explanation
A segregated portfolio (side pocket) becomes effective from the date of the credit event. This ensures that only investors who were invested in the scheme on the date of the credit event participate in any future recovery from the segregated assets.
