Must I hold shares for a full year for them to count as an investment?
If I sell a shareholding before it completes a full year, does that cancel its classification as a long-term investment?
Not necessarily. A specific holding period (such as one year) is often used as an indicative guide, but it isn't a strict standalone condition. The real intent at the time of purchase — whether it was long-term holding versus speculative quick resale — is what actually drives the classification, even if the sale happens before that indicative period is complete for an unforeseen reason.
This makes documenting investment intent early (in board minutes or an internal investment policy, for example) important at the time of purchase, not just at the time of sale. At RASEEKH, we advise documenting investment intent from day one.