Stock market regulator SEBI has further tightened the rules of unpublished price sensitive information (UPSI) to prevent insider trading. Earlier only 5 types of information were considered UPSI, but now it has been increased to 16. This will make it clear to the companies which information to make public and which is not.
Which information will now be considered UPSI?
Under the new rules of SEBI, now information will come under the purview of UPSI’s plan to raise funds of companies, change of credit rating, change in management or ownership, bankruptcy process, one-time settlement or restructuring of bank loan. In addition, if the company, promoter or director are involved in a fraud or default or arrest, it will also be considered UPSI. Also, information about the start of forensic audit or its reports, large orders related to the government or court and the introduction of necessary licenses or permissions has also been included in this list.
What will be the benefit of this change?
These new rules will give more clarity to companies as to keep confidential events and when to make them public. This will reduce judicial disputes as many companies used to take legal relief on the basis of whether any information comes under UPSI or not. Also, if any confidential information is leaked from outside, the company will not have to close its trading window. Another change is that companies will now get up to 2 days to enter UPSI data.
What does this change matter to investors?
These new rules of SEBI will increase transparency in the stock market and will help prevent insider trading. This will also strengthen investors’ confidence in the market as now companies will have to follow more transparency and rules. These new rules will be implemented from 10 June 2024, after which it will be mandatory for all companies to follow them. (With PTI’s input)
First Published – March 13, 2025 | 5:44 pm IST
Related post
(Tagstotranslate) sebi