SEBI has released a consultation paper to receive public comments on the proposed amendment to the definition of Unpublished Price Sensitive Information ("UPSI") under the Insider Trading Regulations, to bring clarity and uniformity of compliance in the ecosystem.

Under the consultation paper, SEBI inter alia analysed the nature of information released by the top 100 listed companies through press releases and the resultant increase in share price and notional profits for such listed companies.

Under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("LODR"), listed companies are required to disclose material events or information to the stock exchanges mandatorily or based on application of the guidelines for materiality framed by the listed companies.

Pursuant to the analysis and rationale of SEBI to identify certain events or information as UPSI by the listed companies, SEBI has proposed that the definition of UPSI be amended to also include information relating to the material events in accordance with Regulation 30 of LODR.

The said consultation paper was published on May 18, 2023 (available here).

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