ISSUE:
Whether Mr. Rakesh Agrawal is guilty of Insider trading?
RULE:
To improve the present regulatory framework for the capital market, SEBI amended the 1992 rules with the 2015 SEBI PIT Regulations. Regulations 3 and 4 of the 2015 PIT Regulations govern the disclosure of Unpublished Price Sensitive Information ("UPSI") and trading while in possession of UPSI, respectively. UPSI refers to any non-public information on a firm or its securities, such as financial statements, dividends, changes in capital structure, mergers, de-mergers, acquisitions, delisting, etc., that, upon becoming public, is expected to substantially alter the price of the shares.