SEBI warns that private confidentiality agreements cannot bypass mandatory market disclosures

The regulator clarifies that personal data under the Federal Act on Data Protection (FADP) means information relating to an identified or identifiable natural person, establishing clear boundaries between private data protection and public market transparency. The background mechanism involves balancing corporate privacy with investor protection, where regulatory mandates demand full public disclosure of material events.

In practice, listed entities face strict requirements to keep markets informed, preventing them from using private contracts to shield critical information from public view. The old position allowed potential ambiguity regarding contractual confidentiality versus statutory disclosures, whereas the new stance strictly prioritizes market transparency over private agreements. Finance professionals and compliance officers must review all client contracts to ensure confidentiality provisions do not conflict with mandatory disclosure obligations.

Practitioners should watch for further regulatory clarifications on data protection standards and corporate transparency enforcement. Bottom line: always align corporate confidentiality clauses with statutory disclosure rules to protect client standing and market integrity.