The Securities Appellate Tribunal opines on what constitutes Unpublished Price Sensitive Information (‘UPSI’) - SEBI (Prohibition of Insider Trading) Regulations, 2015- while setting aside the SEBI Order imposing penalties and debarring the promoter group from accessing the security market.
What constitutes UPSI - any information: (i) relating to the company or its securities either directly or indirectly; (ii) not be generally available; and (iii) likely to materially affect the price of the securities, relating to mergers, de-mergers, acquisitions, delistings, disposals, and expansion of business and such other transactions- Regulation 2(1)(n)(iv)
The ‘generally available information’ must not only mean information which has been disseminated on the platform of the stock exchange but also the information which was already public through numerous media platforms including the television, print, and digital media reports before the promoter group traded.
Ld. SAT held that information in the present case was generally available and does not constitute UPSI;- Therefore, trading done by the promoter group in the shares after the publication of the interviews and news reports cannot be considered as trading while in possession of UPSI.
- Future Corporate Resources (P.) Ltd. v. Securities and Exchange Board of India [2023] 157 taxmann.com 488
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