Unpublished Price Sensitive Information is a part of the idea of insider trading. Insiders are individuals who are part of the company whose shares they trade. They can be vital managerial executives, directors, or employees.
Insider trading refers to malpractice where an insider—someone with access to information that the public doesn’t have—uses that information to their advantage when making investment decisions. It creates a biased benefit due to the imbalance in knowledge between different investors and the company. Price-sensitive information generally includes details about financial performance, mergers, acquisitions, regulatory approvals, etc. Any information that can significantly impact a company’s share price in the market can be considered unpublished price-sensitive information. The SEBI (Prohibition of Insider Trading) Regulations, 2015 categorises the following as Unpublished Sensitive Information:
- Financial results.
- Dividends.
- Change in capital structure.
- Mergers, de-mergers, acquisitions, delistings, disposals, and expansion of business and such other transactions.
- Changes in key managerial personnel
Information generally available to the public on a discriminatory basis would not be considered price-sensitive. Information published on a stock exchange’s website would be generally available.
Done By: Sri Sai Kamalini M.S ,
B.A LL.B (Hons.), LLM ( Corporate law and Financial policy), Junior Legal Consultant
For Origin Law Labs
