In light of SEBI Insider Trading Regulations, explain with reasons whether the following information is deemed as price sensitive : The Chairman of RN Ltd. has submitted his resignation to the Board after reading a news
CS Executive · Securities Laws and Capital Markets · PYQS · June 2023
In light of SEBI Insider Trading Regulations, explain with reasons whether the following information is deemed as price sensitive : The Chairman of RN Ltd. has submitted his resignation to the Board after reading a news article proposing to sell a particular brand to another company by the promoters of the company.
Answer & Explanation:
Information Status: Unpublished Price Sensitive Information (UPSI) Reason: The resignation of a key managerial personnel like the Chairman of a company is explicitly listed as an event that could be UPSI under SEBI (Prohibition of Insider Trading) Regulations, 2015. While the news article about selling a brand might be public, the fact of the Chairman's resignation in response to it, and the implications thereof, is internal and not generally available. Such a significant event can materially affect the company's management stability, strategic direction, and consequently, its share price. Therefore, it is UPSI.
Topics: SEBI (Prohibition of Insider Trading) Regulations, 2015
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