SEBI sends warning letter to Nestle India over breach of insider trading norms
Nestle India has received an "administrative warning letter" from the SEBI for a designated person of the company. It has not disclosed the identity of the person involved in this.
Market watchdog has issued a warning letter to FMCG major Nestle India over an alleged violation of insider trading norms by a senior official of the company.
India has received an "administrative warning letter" from the SEBI for a designated person of the company, according to a regulatory filing on Friday. Nestle India has not disclosed the identity of the person involved in this.
"The Compliance Officer of the Company has received an administrative warning letter from the Deputy General Manager of SEBI for violation of SEBI (Prohibition of Insider Trading) Regulations, 2015 ('PIT Regulations') by a designated person of the Company," it said.
Later in a statement, a Nestle India spokesperson said it would have no material impact on the company.
"We would like to categorically assert that this information has no impact on the financial and operational capabilities of the company. The information has been provided in accordance with Regulation 30 of SEBI Listing Regulations," said Nestle India.
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Insider trading is one of the most serious malpractices that exists in the market. It is selling or buying securities such as equity and bonds by the insiders of a company, which includes the employees, directors, executives and promoters.
To prevent such acts and to promote fair trading in the market for the interest of common investors, SEBI has prohibited the firms from purchasing their own shares from the secondary market.
Edited by Suman Singh