sebi:ORDER/JS/RJ/2025-26/31608-31610
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Facts / Headnote
Adjudication proceedings initiated vide SCN dated October 31, 2024 disposed of without imposition of any monetary penalty
Provisions invoked
- s. 15
- s. 12A
- s. 15G
- s. 15J
- s. 11C
Regulations
- Reg. 2
- Reg. 4(1)
- Reg. 8
- Reg. 2(1)(d)
- Reg. 2(1)(g)
- Reg. 2(1)(n)(i)
- Reg. 3(1)
- Reg. 2(1)(n)
Parties
- Noticee No. 1 - Senior Finance Manager (Taxation), IOCL
- Ramesh Chand Gupta (Noticee No. 2)
- Tara Devi Gupta (Noticee No. 3)
Holding
The Adjudicating Officer held that the allegations that Noticee No. 1 communicated UPSI regarding IOCL's quarterly results for September 2023 with interim dividend to Noticee No. 2 and that Noticee Nos. 2 and 3 traded while in possession of UPSI were not sustained on preponderance of probability, and disposed of the proceedings without monetary penalty.
Full text
Adjudication Order in the matter of suspected insider trading activity of certain entities in the scrip of Indian Oil Corporation Ltd. Page 2 of 47 to as ‘Noticee No. 1’), a designated employee (Senior Finance Manager) of the IOCL, was involved in the process of finalization and limited review for Q2 of 2023-24 as per the information provided by IOCL. It was, further observed that Mr. Ramesh Chand Gupta (hereinafter referred to as ‘Noticee No. 2’) and Ms. Tara Devi Gupta (hereinafter referred to as ‘Noticee No. 3’) are related/connected to Noticee No. 1 as father-in-law and mother-in-law respectively. Based on the findings of the investigation, it was alleged that Noticee No. 1 communicated the unpublished price sensitive information (hereinafter referred to as ‘UPSI’) regarding the quarterly financial result ending September 2023 of IOCL along with the interim dividend to Noticee No. 2. It was, further, alleged that Noticee Nos. 2 and 3 traded in the scrip of IOCL in the period from October 03, 2023 to November 15, 2023 while in possession of UPSI.
Adjudication Order in the matter of suspected insider trading activity of certain entities in the scrip of Indian Oil Corporation Ltd. Page 3 of 47 under rule 4 of Rules to show cause as to why an inquiry should not be held and why
Adjudication Order in the matter of suspected insider trading activity of certain entities in the scrip of Indian Oil Corporation Ltd. Page 4 of 47 September 2023 along with the interim dividend was an UPSI till the time it was disclosed by the company on the exchange platform. Period of UPSI 8.4. It is stated in the IR that the first submission of data by the finance team of IOCL began on October 20, 2023. Accordingly, October 20, 2023 has been considered the date on which UPSI came into existence. 8.5. Further, it is stated that the intimation to NSE relating to quarterly financial results ending September 2023 along with the interim dividend was made on October 31, 2023, at 13:57 Hrs. 8.6. In view of the above, the pre-UPSI period, UPSI period and post-UPSI period have been considered as under. Pre-UPSI Period October 03,2023 to October 19,2023 UPSI Period October 20,2023 to October 31,2023 Post-UPSI Period November 01,2023 to November 15,2023 8.7. In this context, the period from October 03, 2023, to November 15, 2023 has been taken as the investigation period (hereinafter referred to as ‘IP’). Access to UPSI 8.8. IR states that Noticee No. 1 is an employee of the company since 2009. Noticee No. 1 was posted as Senior Finance Manager at IOCL, Gurgaon during the UPSI period. In this regard, it is mentioned in the IR that Noticee No. 1 was a designated employee of IOCL and he has been considered an insider as per the chronology of events provided by the company. It is furth
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Source: SecMarx — sebi:ORDER/JS/RJ/2025-26/31608-31610. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.