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Submission on SEBI consultation paper on review of the definition of Unpublished Price Sensitive Information under SEBI regulations
Submission on SEBI consultation paper on review of the definition of Unpublished Price Sensitive Information under SEBI regulations

December 2, 2024

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SEBI released a Consultation Paper on review of the definition of Unpublished Price Sensitive Information under SEBI (Prohibition of Insider Trading) Regulations, 2015 to bring regulatory clarity, certainty and uniformity of compliance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. The paper aimed to align the definition of UPSI in PIT Regulations with events from Para A and Para B of Part A of Schedule III as defined under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements)  Regulations, 2015.

In response to SEBI's public consultation nasscom provided industry feedback via submission portal on SEBI website. Here are our overall observations on the proposals:

  1. Change in Rating(s)” should not be considered as Unpublished Price Sensitive Information (UPSI). It should be considered as UPSI only in case of high-debt companies for whom these ratings are more relevant and can provide insights into the financial ecosystem of a company.
  2. Fraud or defaults by employees is not typically material in nature and should not be categorised as UPSI. Further, SEBI should provide clarity on the trigger and the time period for implementation of UPSI controls on occurrence of such events.
  3. Change in Senior Management Personnel (SMP) is not price sensitive and may be frequent considering the number of SMPs in a large organisation. Hence, change in SMP not be considered as UPSI.
  4. Given that the event of “admission of winding-up petition” is required to be disclosed to the stock exchange within 24 hours of the occurrence of the event, it would no longer be considered as UPSI. Hence, SEBI should provide clarity on the trigger and time period for implementation of UPSI controls on occurrence of such events.
  5. Given that the event of “action(s) initiated, or orders passed” is required to be disclosed to the stock exchange within 24 hours of the occurrence of the event, it would no longer be considered as UPSI. Hence, SEBI should provide clarity on the trigger and the time period for implementation of UPSI controls on occurrence of such events.

For any queries regarding this submission, please write to tejasvi@nasscom.in.


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Tejasvi

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