Whether information regarding receipt of Demand Notice u/s 8 of IBC is an Unpublished Price Sensitive Information (UPSI) as SEBI Regulations? – Shilpi Cable Technologies Ltd. – SEBI

In this case, it was held that from the mechanism provided under IBC, 2016 to initiate CIRP, I note that the serving of demand notice is a pre-requisite and may result in initiation of CIRP. Though the serving of demand notice is itself not tantamount to initiation of CIRP but definitely an event which indicates that the debtor has defaulted in their obligation to repay the amount due and may result in initiation of CIRP in near future. Hence, it is a negative event and has the potential of affecting the price of securities of the debtor company if disclosed to public. As seen above, the definition of UPSI under PIT Regulations indicates that it is the likelihood of materially affecting the price of the securities and not the actual materiality itself, which is the criteria to determine UPSI.

Whether information regarding receipt of Demand Notice u/s 8 of IBC is an Unpublished Price Sensitive Information (UPSI) as SEBI Regulations? – Shilpi Cable Technologies Ltd. – SEBI Read Post »