Expands the scope of unpublished price sensitive information

Markets regulator Sebi has widened the ambit of the scope of Unpublished Price Sensitive Information (UPSI) by including any proposed fundraising activities agreements which can impact the management or control of the company, restructuring plans, and one-time bank settlements.

The move is aimed at enhancing regulatory clarity, certainty and uniformity in compliance in the ecosystem.

To give this effect, Sebi, in a notification issued on March 11, amended insider trading regulations. The new rules would come into force from June 10.

In its notification, Sebi said that any proposed fundraising activity, upward or downward revisions in credit ratings, other than ESG ratings, and agreements affecting the management or control of the company would be considered as UPSI.

 

Further, developments relating to corporate insolvency processes, including the clearance of resolution plans, one-time settlements, or restructuring of loans and borrowings from banks or financial institutions would fall under the UPSI ambit.