Every Indian family has a cousin in finance team, and every family has an uncle who "knows a guy" and every family function has a conversation over "beta, what are you up to next" which trances into "this stock will definitely rise, so be quick in buying it". Now, for a layman this seems fun, and an opportunity to grow investments (and of course lots of money) and the next thing we know is that the simpleton Dwight buys the share which his spouse Angela suggested in that casual family function conversation.

Most of the time, this is a casual harmless conversation. However, this depends on who is talking and what that person actually knows and this leads to a territory in India's securities regulator which has a name for it, i.e., Unpublished Price Sensitive Information (UPSI).

UPSI is any information which is not generally available with the Public and if made so, it shall materially affect the price of securities. Now, learning about this term would still confuse a Kevin, hence, to simplify, UPSI if held in possession with Dwight along with his relation with Angela (spousal relationship = relative = connected person) would get Dwight in a situation of being an Insider according to SEBI Prohibition of Insider Trading Regulations, 2015. And contrary to a popular belief you don't need to be a director or CEO to get caught, it’s anyone who receives UPSI and acts on it can be treated as a "connected person" or a “tippee.”

This is not a legal explainer, though. It's a quiz. Work through the scenarios below, add up your points honestly, and find out whether you're a model citizen of the capital markets or a future footnote in a SEBI order.

Disclaimer: this quiz will not hold up in any court, tribunal, or SEBI proceeding. It is purely for fun. If you genuinely think you have access to UPSI, please consult an actual securities lawyer.

The Quiz

Pick the answer that's most honest, not most flattering. Tally your points at the end.

1. Your cousin works in the finance team of a listed company. At a wedding, he mentions the quarterly numbers are “looking really good this time.”

• A) You nod politely and go back to the buffet. (0 pts)
• B) You quietly note the company name and check it later out of curiosity. (1 pt)
• C) You buy 50 shares the next morning, “just in case.” (3 pts)
• D) You buy shares, tell your college WhatsApp group, and three of them buy too. (5 pts)

2. You are on the board of a company and learn three days before the official announcement that it has just won a massive new contract.

• A) You wait for the public announcement like everyone else. (0 pts)
• B) You mention it to your spouse “as a fun fact,” nothing more. (2 pts)
• C) You ask your broker to “just keep an eye on” the stock for you. (4 pts)
• D) You buy a chunky position and conveniently go on a “digital detox holiday” right after. (5 pts)

3. Your DEMAT account has been quiet for two years. Then one Tuesday, you make four trades in a stock you have never touched, the day before its results.

• A) Pure coincidence; you’ve been meaning to diversify for ages. (1 pt)
• B) You read an analyst report that morning and got excited. (1 pt)
• C) Your “friend” who works at the company suggested it over chai the day before. (4 pts)
• D) You don’t actually remember why your broker app just suggested it and you tapped buy. (3 pts, plus bonus confusion)

4. A senior executive at a company you have invested in texts you: “Don’t tell anyone, but big news dropping next week”

• A) You reply “ok thanks for the heads up” and do nothing differently. (1 pt)
• B) You quietly sell half your position before the news drops. (4 pts)
• C) You buy more, screenshot the text, and forward it to your family group. (5 pts)
• D) You report the message to compliance, because you are unusually responsible. (0 pts and please, call us, we need more people like you)

5. A friend who works at a fintech startup tells you, “We are about to get acquired, don’t say anything.” It’s not even listed yet.

• A) You congratulate them and move on with your life. (0 pts)
• B) You ask if you can “invest a little” before the deal closes. (3 pts)
• C) You start quietly asking around if anyone’s selling ESOP shares on the secondary market. (4 pts)
• D) You immediately think “wait, is this a SEBI thing or a Companies Act thing” and you’re now overthinking it at 1am. (1 pt, anxiety bonus)

6. Be honest: do you actually know what “UPSI” stands for?

• A) Yes, Unpublished Price Sensitive Information. (0 pts)
• B) No, but it sounds important, so I’ll read the blog again after this quiz. (1 pt, busted)
• C) I thought it was a typo for "oopsie." (2 pts, accidental honesty bonus)

Your Results

0-4 pts: You’d Survive SEBI You are the model investor SEBI wishes everyone could be. You read disclosures, you ignore gossip, and you have never once acted on a “hot tip” from a relative. Boring? Maybe. Compliant? Absolutely. Sleep well.

5-9 pts: Borderline. Maybe Suit Up. You have not technically done anything wrong, yet. But you are one chai conversation away from a “preliminary enquiry.” Maybe stop replying “ok noted” to texts about “big news.” Just a thought.

10-15 pts: See You in SEBI’s Order You should probably know the difference between a “show cause notice” and a “final order,” because you may be about to learn it the hard way. For the love of disclosure norms, stop trading right before results season based on what your relative says at weddings.

16+ pts: You ARE the Order Congratulations are in order. If this were real, you wouldn’t just be reading a SEBI order, you’d be the named party in one. Multiple paragraphs. Possibly a forensic audit. We salute your commitment to the bit.

The (slightly) serious bit

Jokes aside, the line between “harmless gossip” and “insider trading” is thinner than most people assume. The law is blind. Word. It will not check whether the information arrived overchai, at a wedding, or in a 1am WhatsApp message but what matters is whether it was unpublished, price-sensitive, and acted upon. The wedding-buffet tip and the forwarded screenshot are exactly the kind of fact pattern that shows up, almost verbatim, in real SEBI orders just with the names and tickers changed.

So, next time some relative leans in and says “keep this between us,” maybe just don't act on it at all. Your portfolio, and your future self, several show-cause notices from now, will thank you.