Introduction:

For any information to be classified as unpublished price sensitive information (“UPSI”), it should primarily satisfy the following three criteria, (1) It should relate to the company or its securities, directly or indirectly, (2) It should not be generally available, and (3) There should be a likelihood of the information materially affecting the price of the securities. Generally available information is information available in the public domain (on a non-discriminatory basis). Basis this, the Securities and Exchange Board of India (“SEBI”) analyses and identifies whether information can be termed as UPSI and classifies whether trades conducted by Insiders[1] are in violation of the SEBI (Prohibition of Insider Trading) Regulations, 2015 (“2015 PIT Regulations”).Continue Reading SAT’s Verdict in FCRPL & others V. SEBI: Settling the dust on interpretation of Generally Available Information in Insider Trading Cases