Definition
Unpublished Price-Sensitive Information (UPSI)
UPSI is non-public information about a company that, once known, could materially affect the price of its securities.
Under SEBI's PIT Regulations, UPSI includes information about financial results, dividends, mergers and acquisitions, changes in capital structure, key management changes and similar matters, before they are made generally available. Insiders possessing UPSI must not trade or pass it on.
Companies must maintain a structured digital database recording everyone with whom UPSI is shared, with audit trails. Determining when information becomes UPSI — and when it becomes public — is central to enforcing the insider-trading ban.
Related terms
- SEBI Insider Trading Code (PIT)The SEBI (Prohibition of Insider Trading) Regulations, or PIT, ban trading in a company's securities while in possession of unpublished price-sensitive information.
- Trading WindowThe trading window is the period during which a company's insiders are permitted to trade its shares; it is closed when UPSI exists.
- Material DisclosureMaterial disclosure is a listed company's obligation to promptly inform the stock exchanges of events that could affect its share price.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.