Write notes on the following: Principles and procedures of Fair Disclosure.

CS Executive · Capital Markets & Securities Laws · PYQS · December 2021
Write notes on the following: Principles and procedures of Fair Disclosure.

Answer & Explanation:

As laid down in Schedule A of the SEBI (Prohibition of Insider Trading) Regulations, 2015, companies will adhere to the following principles and procedures to ensure fair disclosure of events and occurrences that could impact the price of its securities in the market: Prompt Public Disclosure: Prompt public disclosure of Unpublished Price Sensitive Information (UPSI) that would impact price discovery no sooner than credible and concrete information comes into being in order to make such information generally available. Uniform Dissemination: Uniform and universal dissemination of UPSI to avoid selective disclosure. Chief Investor Relations Officer: Designation of a senior officer as a chief investor relations officer to deal with dissemination of information and disclosure of UPSI. Prompt Dissemination of Selectively Disclosed UPSI: Prompt dissemination of UPSI that gets disclosed selectively, inadvertently or otherwise to make such information generally available. Response to Queries and Rumours: Appropriate and fair response to queries on news reports and requests for verification of market rumours by regulatory authorities. Information Shared with Analysts: Ensuring that information shared with analysts and research personnel is not UPSI. Best Practices for Investor Conferences: Developing best practices to make transcripts or records of proceedings of meetings with analysts and other investor relations conferences on the official website to ensure official confirmation and documentation of disclosures made. Need-to-Know Basis: Handling of all UPSI on a need-to-know basis.

Topics: Insider Trading

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