Defining UPSI
Financial Express Hyderabad|December 16, 2024
SEBI'S PROPOSED CHANGES TO DEFINITIONS OF PRICE-SENSITIVE INFORMATION HAS MERITS AND DEMERITS
SANDEEP PAREKH
Defining UPSI

The Securities and Exchange Board of India (Sebi) released a consultation paper on November 9, 2024, proposing revisions to the definition of Unpublished Price Sensitive Information (UPSI) under the SEBI (Prohibition of Insider Trading) Regulations, 2015 ("PIT Regulations").

To this effect, Sebi has introduced 13 new proposals to broaden the scope of the UPSI definition to include certain material events specified under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("LODR Regulations").

These include, among others, revisions of credit ratings, proposed fund-raising activities to be discussed at Board meetings, agreements impacting the management and control of the company, initiation of forensic audits, outcomes of certain litigations, and the award or termination of significant contracts or orders not in the ordinary course of business.

Some additions are well-founded, as such events significantly influence investor decisions and market movements. However, certain inclusions may dilute the framework's purpose by covering routine operational matters or classifying less material disputes as UPSI.

The relationship between material events and UPSI has evolved over time. Initially, the definition of UPSI under the PIT Regulations included within its scope information related to all material events as per the listing agreement. However, an amendment to the PIT Regulations in April 2019 removed the direct link to materiality. Despite this, instances of failing to categorize information apart from those explicitly specified under the PIT Regulations continued to persist.

To address this issue, Sebi released a consultation paper on May 18, 2023, proposing to align the definition of UPSI with material events under Regulation 30 of the LODR to improve clarity and ensure consistent compliance.

This story is from the December 16, 2024 edition of Financial Express Hyderabad.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the December 16, 2024 edition of Financial Express Hyderabad.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM FINANCIAL EXPRESS HYDERABADView All
Financial Express Hyderabad

Manu, Gukesh Among 4 to Be Awarded Khel Ratna

DOUBLE OLYMPIC-MEDAL-LIST Manu Bhaker and chess world champion D Gukesh were among four winners of the Major Dhyan Chand Khel Ratna award announced by the Sports Ministry, which also named an unprecedented 17 para-athletes in the list of 32 Arjuna awardees to honour their resounding success at the Paris Paralympics.

time-read
1 min  |
January 03, 2025
Financial Express Hyderabad

Captain Rohit to miss Sydney Test, 'opts to rest'

THE EARLY HINT of India captain Rohit Sharma sitting out of the final Test of the Border-Gavaskar Trophy at Sydney came from head coach Gautam Gambhir.

time-read
3 mins  |
January 03, 2025
Financial Express Hyderabad

White-collar hiring up 9% in December

Hiring for white-collar jobs in India rose 9% in December compared to the same month in the previous year, a survey released on Thursday showed.

time-read
2 mins  |
January 03, 2025
Financial Express Hyderabad

Norms for capex release...

Minimising Shortfall

time-read
2 mins  |
January 03, 2025
Financial Express Hyderabad

Indices soar nearly 2%

EQUITY INDICES OF China, Hong Kong, and Thailand declined by up to 2.66%, while Indonesia (up 1.18%), Australia (up 0.53%), and Singapore (up 0.35%) ended with gains.

time-read
1 min  |
January 03, 2025
Financial Express Hyderabad

Rein in tax terrorism

WE NEED A TRANSPARENT SYSTEM THAT CURBS LITIGATION AND A QUICK RESOLUTION PROCESS

time-read
4 mins  |
January 03, 2025
Financial Express Hyderabad

Lessons from Manmohan Singh

Singh, as an RBI governor living through the permissive 1980s, understood the value of fiscal conservatism and implemented it as finance minister

time-read
3 mins  |
January 03, 2025
Financial Express Hyderabad

H-1B Visa Flip-Flop

Trump must convince hardliners that giving US access to the world's best and brightest is essential to its future

time-read
2 mins  |
January 03, 2025
Financial Express Hyderabad

New Orleans attack: Accused was inspired by Islamic State

A Tesla Cybertruck exploded in flames outside the Trump International Hotel Las Vegas on Wednesday, killing the driver and injuring seven others, and the FBI was investigating whether the blast was an act of terrorism, officials said.

time-read
1 min  |
January 03, 2025
Financial Express Hyderabad

Europe, Asia factories end 2024 on weak footing

FACTORY ACTIVITY IN Asia and Europe ended 2024 on a soft note as expectations for the new year soured amid growing trade risks from a second Donald Trump presidency and China's fragile economic recovery.

time-read
1 min  |
January 03, 2025