Sebi is looking to broaden the scope of Unpublished Price Sensitive Information (UPSI) by including proposed fundraising activities, restructuring plans and one-time bank settlements.

In its consultation paper, the Securities and Exchange Board of India (Sebi) has proposed that only 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 such as fund misappropriation or financial misstatements, it should be disclosed as price-sensitive.

The proposed changes to Sebi’s definition of UPSI are aimed at increasing regulatory clarity and consistency.

In the constitution paper, Sebi suggested including fundraising proposed to be undertaken in the definition of UPSI.

Currently, the decision concerning fundraising proposed to be undertaken is not included in the definition at present.

The regulator has proposed the inclusion of restructuring plans, one-time bank settlements and other significant financial restructurings as UPSI.

Sebi has also proposed that actions by regulatory or judicial bodies against a company or its key personnel if involving significant enforcement, fines, penalties, or other sanctions, should be considered price-sensitive and classified as UPSI.

Among others, the regulator suggested that outcomes of major litigations or disputes that could affect a company’s operations or finances, along with any major contracts or orders awarded to the company (or significant amendments or terminations) outside regular business activities, should be disclosed as UPSI due to their potential impact on financial performance.

Further, the granting, withdrawal, or suspension of essential licenses or approvals should be disclosed, as such events could significantly affect company operations.

The Securities and Exchange Board of India (Sebi) has sought public comments on the proposals by November 30.

Sebi last week also proposed reducing the mandatory investment percentage, applying it based on salary brackets, and excluding non-cash components like ESOPs from the minimum investment calculation. The proposals aimed at easing compliance, particularly for employees with lower CTCs and those in operational roles.
PTI