The UPSI full form in law is Unpublished Price Sensitive Information. It refers to any information about a business or its securities that is not generally known but that, if made public, may have a big impact on the stock prices of the business. Details like financial performance, mergers or acquisitions, noteworthy commercial transactions, or changes in senior management individuals are frequently included in UPSI.
Who governs UPSI?
The SEBI Regulations, 2015, which are designed to stop insider trading, regulate how UPSI is handled in India. According to these rules, it is unlawful for anybody with access to UPSI to trade in the company’s stocks using that information or to divulge that information to third parties who might use it to trade. The objective is to prevent unfair advantages from non-public information in order to provide a level playing field in the market.
Significance of UPSI:
Unpublished Price Sensitive Information is important because it plays a vital part in preserving integrity, fairness, and openness in the financial markets. UPSI refers to important, confidential information about a business that, if revealed, might have a big effect on its stock price. Tight regulations govern how such information is handled, particularly to stop immoral activities like insider trading.