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CS Executive · Capital Market and Securities Laws · Prohibition of Insider Trading

Sunrise Textiles Ltd, a listed company, wants to ensure that unpublished price sensitive information (UPSI) is not shared selectively with analysts. Under the SEBI (Prohibition of Insider Trading) Regulations, 2015, which document must the board of the company formulate and publish on its website to achieve this?

The company must formulate and publish a Code of Fair Disclosure on its website. Under the SEBI insider trading regulations, this code sets out practices for the prompt, uniform and non-selective public disclosure of unpublished price sensitive information, preventing selective sharing with analysts.

  1. ACode of Fair DisclosureCorrect
  2. BCode of Corporate Governance
  3. CCode of Ethics for Auditors
  4. DShareholders' Agreement

Explanation

The Regulations require every listed company to formulate and publish a code of practices and procedures for fair disclosure of UPSI, and to post it on its website. The other documents are not what the insider trading regulations prescribe for this purpose.

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