Photo of Nayanika Gupta

Associate in the Banking and Finance practice at the Mumbai office of Cyril Amarchand Mangaldas. Nayanika can be reached at nayanika.gupta@cyrilshroff.com.

Permissibility of Pledges: Decoding SEBI’s View

The efficiency of the securities market depends on equal access to information and ensuring information symmetry for all stakeholders. Many Indian listed entities have significant promoter/ promoter group shareholding, which gives them the advantage of asymmetrical access to unpublished information. For free and fair trade in the financial market, a level-playing field between the promoter/ promoter group and retail shareholders is crucial. This is why there is prohibition on communication of Unpublished Price Sensitive Information (“UPSI”) and insider trading.Continue Reading Permissibility of Pledges: Decoding SEBI’s View