The intent and coverage of this paper is to shine a light on risks arising from leakage of UPSI and other threats that may disrupt businesses, so that companies can be aware and adopt better practices to mitigate them.
One of the fundamental problems faced by companies in general and Indian companies in particular, is how to protect their confidential data from theft and unauthorised access. Due to the advent of technology, information flow of confidential data has become very fluid and in such an environment the data is frequently in transit. In the event any confidential unpublished price sensitive information (UPSI) becomes selectively available knowingly or unknowingly, it would in all likelihood have an impact on the price movement of the company’s securities. It is imperative companies are aware about the risks arising from such a situation and adopt better practices to mitigate them.
© 2020 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.