The Securities and Exchange Board of India (SEBI) is looking to expand the definition of unpublished price-sensitive information (UPSI) as part of efforts to enhance market transparency and bolster disclosures. UPSI refers to information that is not publicly available and could significantly impact the price of a company’s securities if disclosed. Currently, UPSI typically includes financial results, mergers and acquisitions, and changes in management, among other key corporate events.
Source:- bbc news
Under the proposed changes, SEBI aims to broaden the scope of UPSI to include a wider range of material information that could affect stock prices but is not yet in the public domain. This expansion is intended to ensure that market participants have equal access to important data, thereby improving market fairness and reducing instances of insider trading. By including more categories of information under the UPSI umbrella, SEBI seeks to curb the possibility of selective disclosure by companies to a chosen few, which can lead to an uneven playing field.
Source:- news 18
In line with these proposed changes, SEBI also plans to enhance the timeliness and accuracy of disclosures. This includes encouraging companies to provide more frequent updates on material events and to make their disclosures more granular. Additionally, companies would be required to set up stricter internal controls to monitor the flow of sensitive information within the organization.
If implemented, this move would likely increase accountability among corporate entities and improve the overall integrity of India’s financial markets. While these changes are expected to benefit market participants by ensuring more comprehensive information availability, companies will need to carefully assess their compliance frameworks to align with the evolving regulatory landscape.
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