SBI Funds Management Limited Adopts Comprehensive Code for Fair Disclosure of Price Sensitive Information

SBI Funds Management Limited Adopts Comprehensive Code for Fair Disclosure of Price Sensitive Information​

SBI Funds Management Limited, a joint venture between SBI and AMUNDI, has adopted a detailed Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information (UPSI). The initiative aims to establish a robust framework ensuring uniformity, transparency, and fairness in dealings with all stakeholders concerning the company's securities.

The objective of the newly established Code is to formulate a clear policy for the fair disclosure of any events or occurrences that could potentially impact price discovery in the market. By adhering to these procedures, SBI Funds Management Limited seeks to ensure compliance with applicable laws and regulations while maintaining high standards of corporate governance.

Operationalizing Disclosure and Investor Relations​

The company has defined the role of the Compliance Officer as the Chief Investor Relations Officer (CIRO). The CIRO is tasked with ensuring the prompt public disclosure of UPSI as soon as credible information becomes available, making it generally accessible to the market. Key responsibilities assigned to the CIRO include overseeing compliance with the Code, managing the uniform dissemination of UPSI to avoid selective disclosure, and responding appropriately to queries or verification requests from regulatory authorities.

To maintain strict control over sensitive information, the company established procedures for handling all UPSI on a need-to-know basis. Any sharing of UPSI within the organization or with external parties must follow a prescribed "wall-crossing procedure," provided it is necessary for legitimate purposes and not intended to circumvent any regulations.

Procedures for External Stakeholders and Analysts​

The Code outlines strict guidelines regarding the handling of information shared with analysts, institutional investors, and research personnel. The company mandates that any UPSI shared with these parties must first be made generally available through a public disclosure to the Stock Exchanges and posting on the official corporate website.

Furthermore, the procedures define authorized spokespersons for communicating with external professionals, including the Chairman, MD & CEO, Executive Director, CIRO, and specific members of the Investor Relations team. The company is also committed to recording conference calls and meetings held with analysts, ensuring these records are disclosed to Stock Exchanges and hosted on the company website.

Defining Legitimate Purpose in UPSI Sharing​

The Code provides a guiding framework for determining when the sharing of UPSI constitutes a 'legitimate purpose.' This determination is deemed subjective and must be assessed based on the facts and circumstances of each case.

Illustrative instances considered as fulfilling a legitimate purpose include:

• Investigations or requests for information by statutory or governmental authorities, such as the Ministry of Corporate Affairs or SEBI.
• Proceedings under orders of courts or tribunals.
• Compliance with applicable laws, including securities law and company law.
• Sharing information with intermediaries and fiduciaries (like auditors or legal advisors) for genuine business purposes.

The Code emphasizes that while the scope of 'legitimate purpose' is inclusive, all sharing must be assessed to ensure it is in the best interest of the Company and does not aim to evade any prohibition under PIT regulations.

SBIFUNDS Stock Price Movement​

Shares of SBI Funds Management Limited slipped by 0.51% in the closing session today, settling at ₹609.75. The stock closed on heavy volume, having earlier tested a powerful 52-week high of ₹624.95 amidst trading activity that reached 84.82 million shares.