The Securities and Exchange Board of India (Sebi) has broadened the definition of Unpublished Price Sensitive Information (UPSI) under its insider trading regulations, a move aimed at enhancing transparency and compliance in the financial ecosystem. The amendments, notified on March 11 and effective from June 10, now include a wider range of events and activities that could influence a company’s stock price or governance.

Under the revised rules, UPSI will encompass proposed fundraising activities, agreements impacting management or control, restructuring plans, and one-time bank settlements. Other additions include credit rating revisions (excluding ESG ratings), corporate insolvency developments, fraud or defaults by key personnel, and forensic audit initiations or findings related to financial misconduct.

Actions by regulatory or judicial bodies, arrests of key figures, and changes to critical licenses or guarantees for third parties also fall within the expanded scope.

Sebi has introduced flexibility in compliance, allowing entries into the structured digital database within two days of receiving external UPSI, rather than mandating immediate updates.

Additionally, trading window closures are not required for UPSI originating outside the company. These changes aim to provide clarity and reduce disputes over what constitutes UPSI.

The amendments reflect Sebi’s intent to strengthen market integrity by ensuring uniform compliance and minimizing insider trading risks. By widening the UPSI ambit, the regulator seeks to foster greater trust in India’s capital markets while balancing operational flexibility for listed companies.