Dr. Reddy’s Laboratories has announced an update to its ‘Code of Practices and Procedures for Fair Disclosures of Un-published Price Sensitive Information’. This update aligns with the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, reflecting the company’s commitment to maintaining transparency and compliance.
The revised code outlines the procedures for uniform and universal disclosure of unpublished price-sensitive information (UPSI) to avoid selective disclosure. The Chief Investor Relations Officer is tasked with ensuring that any UPSI is disseminated promptly and uniformly across all platforms, including the company’s website.
In the event of any inadvertent selective disclosure, the company is committed to making the information generally available within the time frame specified by applicable laws and regulations. The code also details the company’s approach to interacting with regulatory authorities, ensuring fair responses to queries and verification requests related to market rumours.
The company emphasises that during interactions with investors, analysts, and other stakeholders, no UPSI will be selectively disclosed. To support transparency, transcripts or recordings of investor conferences will be made available on the company’s website.
The handling of UPSI is strictly on a ‘need to know’ basis, and any inadvertent disclosure will be publicly disseminated within 24 hours. The code also defines ‘legitimate purpose’ for sharing UPSI, ensuring that it is shared only in the ordinary course of business with partners and advisors, who are then considered insiders.
A structured digital database will be maintained by the Chief Executive Officer under the Board’s supervision, recording the nature of UPSI and the identities of those sharing and receiving it. This database will be preserved for at least eight years, or longer if required by regulatory investigations.
The code is subject to review and amendment by the Board to ensure ongoing compliance with SEBI regulations and other applicable guidelines.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).