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Board of India (Sebi) released a consultation paper on November 9, 2024, proposing revisions to the definition of Unpublished Price Sensitive Information (UPSI) under the SEBI (Prohibition of Insider Trading) Regulations, 2015 ("PIT Regulations").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 Lucknow.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 16, 2024 edition of Financial Express Lucknow.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Preparing for Trump 2.0
India needs a proper strategy to respond to the US President-elect's threats on tariffs
Trump and crypto flip-flops
Regulators must hold their ground, resisting the call of deregulation and ensuring crypto's integration into the financial system is guided by prudence, not populism
Mercedes, Toyota Building Super-Hybrids
The Mercedes GLC 350e offers four zones of climate control and its headlights project icons onto the pavement—such as a pedestrian—to warn of coming hazards.
A $24-billion fund puts its religious stamp on corporate America
JIM LAKE, a devout Christian in Washington state, said his religious beliefs have always made him opposed to practices such as abortion, transgender transitions, or embryonic stem cell research.
Biden blocks US Steel takeover bid by Nippon
PRESIDENT JOE BIDEN has blocked the $14.1-billion sale of United States Steel to Nippon Steel, killing a high-profile deal that sparked a political firestorm and tensions between the US and Japan.
Boeing Still Needs Culture Change: FAA
A year after a panel blew out of a Boeing 737 Max during flight, the nation's top aviation regulator says the company needs \"a fundamental cultural shift\" to put safety and quality above profits.
US car sales get boost
SOUTH KOREA'S HYUNDAI Motor Co and affiliate Kia Corp aim to grow their combined global sales by 2% to 7.39 million vehicles in 2025, after reporting a dip in 2024 sales and missing their targets.
China's central bank likely to cut rates this year
CHINA'S CENTRAL BANK said it is likely to cut interest rates from the current level of 1.5% \"at an appropriate time\" in 2025, the Financial Times reported on Friday citing comments the bank made to the newspaper.
Forex reserves drop to eight-month low
The reserves fell by $4.1 bn in the week ended Dec 27, after falling by a cumulative $13.7 bn in the prior three weeks
Kotak Bank's Nagnur Steps Down as COO, CTO
KOTAK MAHINDRA BANK'S chief operating officer (COO) and chief technology officer (CTO) Milind Nagnur has stepped down due to personal reasons, the bank said in an exchange filing on Friday.
