Dr. Reddy’s Laboratories Ltd. announced on March 24, 2026, that its Board of Directors has approved the amended ‘Code of Practices and Procedures for Fair Disclosures of Un-published Price Sensitive Information’ (UPSI). This amendment is in compliance with mandatory regulations. The code now details strict guidelines for handling, communicating, and managing UPSI internally on a ‘need to know’ basis and strictly prohibits disclosure via social media.
Board Approval of Disclosure Code Update
On March 24, 2026, the Board of Directors of Dr. Reddy’s Laboratories Limited formally approved revisions to its internal policy governing the management of confidential market information. This document is titled the ‘Code of Practices and Procedures for Fair Disclosures of Un-published Price Sensitive Information’.
Key Principles of the Amended Code
The updated code emphasizes several critical operational mandates for handling Un-published Price Sensitive Information (UPSI):
- Uniform Disclosure: The Chief Investor Relations Officer must ensure that any UPSI dissemination is uniform and universal across all relevant exchanges to prevent selective disclosure.
- Prompt Furnishing: Material information must be furnished promptly to the Stock Exchanges as soon as credible and concrete information comes into being.
- Handling Leaks: If UPSI is inadvertently disclosed selectively, the information must be made generally available promptly, adhering to specified legal timelines.
- Social Media Ban: The disclosure of UPSI or any material non-public information through any social media platform is strictly prohibited. If unintentional disclosure occurs, public dissemination must follow within 24 hours of identification.
Governance and Internal Control
The code reinforces stringent internal controls over confidential data:
- Handling of UPSI:
- UPSI must be managed strictly on a “need to know” basis, limited only to those within the Company requiring it for legitimate purposes, performance of duties, or discharge of legal obligations.
- Legitimate Purpose:
- Sharing UPSI is restricted to furtherance of legitimate business purposes with defined parties such as partners, collaborators, lenders, and legal advisors, provided this sharing does not circumvent regulatory prohibitions.
- Structured Database:
- The Chief Executive Officer, supervised by the Board, is responsible for maintaining a structured digital database containing details of all shared UPSI. This database must be preserved for a minimum period of eight years.
Regulatory Reporting
The Company commits to providing appropriate and fair responses to regulatory authorities concerning queries, news reports, and verification requests related to market rumors, in alignment with its established policies on materiality.
The Code will be subject to periodic review by the Board to ensure continuous alignment with the latest regulatory amendments.
Source: BSE
