The price of equity share of a listed company viz. NextDial Ltd. (NDL) increased from ₹10 to high of ₹50 i.e. a rise of 500% during the period 1st April, 2018 to 30th Sept., 2018. NDL had entered into a Share Purchase Ag

CS Executive · Securities Laws and Capital Markets · PYQS · June 2019
The price of equity share of a listed company viz. NextDial Ltd. (NDL) increased from ₹10 to high of ₹50 i.e. a rise of 500% during the period 1st April, 2018 to 30th Sept., 2018. NDL had entered into a Share Purchase Agreement (SPA) with the proposed acquirer(s) to acquire 40% of the subscribed equity share capital as of 31st Aug., 2018 which would result in change of management. This initial discussion on the deal was made on 1st April, 2018 but SPA was signed on 25th April, 2018. During 1st April, 2018 to 30th Sept., 2018, the promoter and his wife dealt in the script of NextDial Ltd. Referring to the provisions of SEBI (PIT) Regulations, answer the following: (i) Define Unpublished Price Sensitive Information.

Answer & Explanation:

The SEBI (Prohibition of Insider Trading) Regulations, 2015 defines "Unpublished Price Sensitive Information" which means any information, relating to a company or its securities, directly or indirectly, that is not generally available which upon becoming generally available, is likely to materially affect the price of the securities and shall, ordinarily including but not restricted to, information relating to the following:- financial results; dividends; change in capital structure; mergers, de-mergers, acquisitions, delistings, disposals and expansion of business and such other transactions; changes in key managerial personnel.

Topics: SEBI (Prohibition of Insider Trading) Regulations, 2015

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