The Securities and Exchange Board of India (SEBI) has proposed a review of the definition of Undisclosed Price Sensitive Information under its Prohibition of Insider Trading Regulations to bring greater clarity and consistency in compliance.
One key proposal is that companies should disclose any “agreements affecting management and control” of the company. This includes details on managerial changes and any actions taken against key personnel by enforcement agencies or judicial bodies.
Additionally, companies would need to report any fraud, defaults, or arrests involving key personnel. Proposed changes also require companies to disclose alterations to capital structure, with some updates from board meetings required to be reported to the stock exchange within 30 minutes. Both internal and third-party agreements would need to be disclosed.
Other changes proposed include disclosure of loan settlements, results of insolvency approvals or rejections, dispute outcomes, and license status. These proposals aim to increase transparency in the operations of Asset Management Companies (AMCs), addressing aspects like changes in key personnel, structural adjustments, and any enforcement actions against them.
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