SEBI Board Meeting: Scope Of Definition Of Unpublished Sensitive Information Expanded By Market Regulator

The Securities and Exchange Board of India's board on Wednesday approved changes to the definition of Unpublished Price Sensitive Information under the Insider Trading Regulations, 2015. The changes were made to enhance regulatory clarity and streamline compliance in the market.

The amended definition now includes 17 out of 27 material events, which were previously not covered, into the illustrative list of UPSI. 

These events, which are required to be disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, are now explicitly defined as UPSI. This update aims to improve the consistency and transparency of the insider trading regulations, ensuring a more uniform approach across the ecosystem.

Additionally, SEBI has introduced threshold limits for identifying events as UPSI, based on the criteria outlined in Part A of Schedule III of the Listing Obligations and Disclosure Requirements Regulations, 2015. 

The amendments also provide flexibility for events originating outside the company, allowing these events to be entered into a structured digital database on a deferred basis within two days. 

Furthermore, the amendments remove the mandatory trading window closure requirement for such events, making it easier for listed companies to comply with the regulations and improving the ease of doing business.