CA, CS & DISA VIVEK KHANDELWAL
Quick Summary
Unpublished Price Sensitive Information is one of the most important aspects which is regulated by Securities and Exchange Board of India (SEBI) vide initial roll out in the year 2015 (Regulation 8 of the SEBI (Prohibition of Insider Trading) Regulations, 2015 (the Regulations). Its the bone of cont
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FAQ :
UPSI is any information relating to a company or its securities that is not generally available and would likely affect the market price of its securities once it becomes public. This typically includes financial results, dividends, changes in capital structure, mergers, and key managerial personnel changes.
The Securities and Exchange Board of India (SEBI) regulates the disclosure of UPSI through the SEBI (Prohibition of Insider Trading) Regulations, 2015.
Companies must formulate and publish a code of practices and procedures for the fair disclosure of UPSI on their official website, as per SEBI regulations.
What constitutes 'material' information can vary between companies and must be determined based on the specific facts and figures of each event within an organisation.
Companies can enhance compliance by holding audit committee and board meetings on the same day, restricting mobile phone access during meetings, limiting financial data access on a 'need to know' basis, and regulating email circulation of sensitive information.
The primary goal is to ensure fair play in the market and prevent individuals from making wrongful gains or losses by possessing and misusing price-sensitive information.
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