SEBI tightens norms for price sensitive information after study finds corporates flouting rules.! - MMJC

Market regulator SEBI proposes to tighten norms for Unpublished Price Sensitive Information (UPSI) after it found a large number of corporates flouting current rules.

“This would be U-turn from the correction SEBI had made in 2019 and the industry may need some time to set up a framework to identify UPSI as it is an evolving concept.

There is a concept of UPSI under SEBI Prohibition of Insider Trading (PIT) Regulations. Every UPSI is deemed material information, but every material information may or may not be UPSI. SEBI proposes to change this situation.

The proposed change may increase the compliance burden although unwarranted. Though concerns expressed by SEBI are appropriate, the remedial action proposed by it does not seem to be appropriate. If SEBI wants to take this remedial action, it has to amend Regulation 30(4) of LODR.

PIT has been the most happening subject in the last three years and there were eight amendments, 14 circulars from SEBI and Stock Exchanges, 26 informal guidance’s, and 3 FAQs comprising 59 questions. If this amendment happens, it would be the ninth amendment to SEBI PIT since 2019.”

Outlook shared by our partner – Makarand Joshi is published in Business Line..

https://www.thehindubusinessline.com/news/sebi-tightens-norms-for-price-sensitive-information-after-study-finds-corporates-flouting-rules/article66867017.ece