Mr. Punit Goenka, the managing director and managing director of Zee Entertainment Enterprises (ZEEL), has settled a dispute involving a possible breach of insider trading regulations by paying the market regulator Securities and Exchange Board of India (SEBI) Rs. 50.7 lakh.
This problem first surfaced in September 2020, when ZEEL announced the introduction of Cinema 2 Home Service, a pay-per-view service called ZEEPLEX.
Zeeplex amid the Covid restrictions was a favorable development for the firm and qualified as undisclosed price-sensitive information (UPSI), according to Sebi’s examination.
UPSI, often referred to as unpublished price-sensitive information, is important information that has not yet been made public but has the potential to have a major impact on the price of a company’s shares or other securities. It is referred to as “price-sensitive” because the information may affect the stock’s price if it were made public, and it is referred to as “unpublished” since it has not yet been made accessible to the broader public.
Examples of UPSI include information on a company’s financial performance, management changes, or announcement of a large partnership or acquisition. Other instances include “changes in management.” It is essential that this information be kept secret until it is made public in order for everyone to have access to the same information and to be able to make informed decisions about buying or selling the company’s shares.
It is illegal to utilize UPSI to obtain an unfair advantage, such as when participating in insider trading, which might have serious consequences. Companies are required to put in place strict measures to prevent the unauthorized disclosure of UPSI and to ensure that any important information is made available to the public in a timely and equitable manner. Additionally, businesses must follow all relevant laws and rules pertaining to the disclosure of UPSI.
