Sebi's Bold Move: Expanding UPSI Definition for Market Clarity

To enhance transparency, SEBI suggests broadening UPSI to include fundraising activities, restructuring plans, and major legal outcomes. Disclosure of significant events impacting management and financial performance are emphasized for increased regulatory clarity, inviting public comments by November 30.

In a move to boost transparency in market disclosures, the Securities and Exchange Board of India (SEBI) is considering broadening the scope of Unpublished Price Sensitive Information (UPSI). This expansion would include proposed fundraising activities, company restructuring plans, and one-time bank settlements to ensure that potential market influencers are covered.

SEBI's consultation paper suggests that only agreements impacting company management and control, including shareholder, joint venture, and family settlements, should fall under price-sensitive information. Likewise, significant developments in corporate insolvency, such as tribunal-resolution plans, will be regarded as price-sensitive events requiring disclosure.

The regulatory body is also advocating for transparency regarding forensic audits related to fund misappropriation or financial misstatements. To add clarity and consistency, SEBI asked the public for comments on these proposals by November 30, in anticipation of updating the current UPSI definition.

(With inputs from agencies.)