Sebi, industry officials seek common ground as differences on UPSI arise

Industry officials say the proposed change may bring confusion to what all is categorised as price-sensitive information along with compliance burden

India Inc and compliance officers have taken exception to the market regulator’s proposal to widen the definition of Unpublished Price Sensitive Information (UPSI) to curb insider trading, with many even calling it a step backwards and a move that will burden both Sebi and the companies.

The Securities and Exchange Board of India (Sebi) has proposed to link the definition of UPSI to material events defined under the Listing Obligations and Disclosure Requirements (LODR) Regulations. The change would mean that the restriction on trading while in possession of UPSI under the prohibition of insider trading norms would apply to a