What Is The Full Form Of UPSI In Law?

UPSI full form in law is Unpublished Price Sensitive Information. This is some secret information about the company or its shares that has not been published yet. If such info comes to the notice of the public, it changes the stock prices by leaps and bounds. This may include information on how much money a company makes if it merges with another company, buys other companies, and changes its capital base, among other changes affecting the business. In other words, such information has to be very carefully handled so that it’s not used for benefits in insider trading that could harm the fair and honest interest of the stock markets as mentioned under the SEBI (Prohibition of Insider Trading) Regulations, 2015.

Legal Implications and Use:

Broadly, the rules relating to UPSI are laid down under the SEBI (Prohibition of Insider Trading) Regulations, 2015. These rules are meant to save important information from misuse by some sections of people who invest their savings in stocks. These regulations will call for strict control of how UPSI is being managed within companies. They will ask for companies’ detailed digital records, which would show who knows about this information and prescribe stringent rules for when and how this information could be shared.