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ARTICLE · 06 FEBRUARY 2023

Information ‘Heard On Street' Is Not UPSI: SAT

In their defense, the appellants argued that they were not the originators of such messages but had merely shared messages in a ‘forwarded as received' manner.

IndiaCorporate/Commercial Law
Finsec Law Advisors
Finsec Law Advisors
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Originally published April 6, 2021

On March 22, 2021, the Securities Appellate Tribunal (SAT or the Tribunal) in the matter of Shruti Vora v. Securities and Exchange Board of India set aside the penalty imposed by the adjudicating officer (AO) of the Securities and Exchange Board of India (SEBI) for forwarding allegedly unpublished price sensitive information (UPSI) of six companies on WhatsApp. Whether a 'forwarded as received' WhatsApp message regarding the financial information of a company, shortly after the in-house finalization of the financial results, could be considered as UPSI under the provisions of the SEBI (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations) was the primary question raised in the appeal.

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