Published Paper Details:

The concept of Unpublished Price Sensitive Information (UPSI) is pivotal in understanding and regulating insider trading activities in India. Defined under Rule 2(n) of the SEBI PIT Regulations, 2015, UPSI encompasses a broad spectrum of confidential data pertaining to a company's financial performance, strategic decisions, and other material developments. This paper explores the legal framework surrounding UPSI, landmark judgments, notable observations from insider trading cases, and recent developments in SEBI regulations. Through an analysis of cases such as Mrs. Chandrakala vs. SEBI and PVP Global Ventures, this paper delves into the complexities of proving insider trading violations, emphasizing the interplay between market behaviors, informational dynamics, and legal requirements. Key considerations include the presumption of possession of UPSI, trading patterns based on UPSI, and the distinction between generally available information (GAI) and UPSI. Furthermore, recent developments such as SEBI's consultation paper proposing changes to the definition of UPSI highlight the ongoing efforts to enhance regulatory effectiveness in combating insider trading. The paper also discusses the implications of including material events from Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 within the scope of UPSI, potentially leading to indefinite trading halts for certain individuals. Overall, this paper provides a comprehensive overview of UPSI regulation in India, addressing legal ambiguities, landmark judgments, and evolving regulatory approaches aimed at ensuring market integrity and investor protection.