SEBI to review definition of Unpublished Price Sensitive Information under PIT regulations
SEBI recently released a consultation paper seeking public comments on its proposed review of definition of Unpublished Price Sensitive Information under SEBI (Prohibition of Insider Trading) Regulations, 2015 to bring regulatory clarity, certainty and uniformity of compliance in the ecosystem. It also propose that agreements, including shareholder, joint venture and family settlement, that affect the management and control of the firm and are known to the firm should be considered price-sensitive and included in the illustrative list of events under the definition of UPSI. Additionally, key developments in corporate insolvency proceedings, such as initiation or approval of resolution plans by the tribunal, should be disclosed as potentially price-sensitive. If a forensic audit is launched or concluded for issues like fund misappropriation or financial misstatements, it should be disclosed as price-sensitive.
The decision concerning fundraising proposed to be undertaken, restructuring plans, one-time bank settlements and other significant financial restructurings as well as actions by regulatory or judicial bodies against a company or its key personnel if involving significant enforcement, fines, penalties, or other sanctions are also being proposed for inclusion under the definition of UPSI.
