The market regulator is considering expanding unpublished price sensitive information to include fund raising plans, restructuring plans and one time bank settlements.
SEBI is considering making changes in some rules to increase transparency in the market. The market regulator is considering expanding unpublished price sensitive information by including fund raising plans, restructuring plans and one-time bank settlements. This has come to light in a consultancy paper published by SEBI on Sunday.
What has been said in the paper
The paper states that shareholder, joint venture and family settlement agreements that may affect management and control in the firm should fall under the definition of price sensitive or UPSI. Additionally, major developments in corporate insolvency proceedings, such as the initiation or approval of resolution plans by the tribunal, should be disclosed as potentially price sensitive.
Raising funds will also be considered price sensitive
Apart from this, forensic audit initiated or completed for incorrect information of the finance of any issue of fund will be considered price sensitive. SEBI’s intention behind the proposed change in the definition of unpublished price sensitive information is to increase transparency. Let us tell you, in this paper, SEBI has said that the matter of raising funds will also be considered price sensitive.
What are the rules now?
At present, the process of raising funds is not considered price sensitive. But now there is a plan to include restructuring plans, one-time bank settlement and other financial restructuring plans in UPSI (Unpublished Price Sensitive Information). SEBI has said in its proposal that if the regulator or judicial institutions impose penalty, fine etc. against the company or its officer, then it will also be given the status of price sensitive.
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