The Securities and Exchange Board of India (SEBI) has issued an administrative warning to Nestle India for a violation of insider trading regulations.The warning, addressed to the company’s Compliance Officer, was issued by SEBI’s Deputy General Manager for a contra-trade violation under the SEBI (Prohibition of Insider Trading) Regulations, 2015.
According to Nestle India’s stock exchange filing, the company received SEBI’s letter on March 6, 2025, citing the violation committed by a designated person within the organisation. However, the company clarified that the issue has no material impact on its financial, operational, or other activities.
According to SEBI, a contra trade occurs when an insider buys or sells shares within six months of a prior transaction in the same security, with the intent of making short-term profits.
Also read: New SEBI chief says regulator will unveil plan to disclose ‘conflict of interest’ within boardSEBI regulations prohibit contra trades for insiders and their immediate relatives to prevent misuse of unpublished price-sensitive information (UPSI). The six-month restriction period is calculated from the date of the initial transaction, not the agreement date.
According to Nestle India’s stock exchange filing, the company received SEBI’s letter on March 6, 2025, citing the violation committed by a designated person within the organisation. However, the company clarified that the issue has no material impact on its financial, operational, or other activities.
According to SEBI, a contra trade occurs when an insider buys or sells shares within six months of a prior transaction in the same security, with the intent of making short-term profits.
Also read: New SEBI chief says regulator will unveil plan to disclose ‘conflict of interest’ within boardSEBI regulations prohibit contra trades for insiders and their immediate relatives to prevent misuse of unpublished price-sensitive information (UPSI). The six-month restriction period is calculated from the date of the initial transaction, not the agreement date.
On Friday, Nestle India’s stock rose over 2%% to ₹2,245.80 on the BSE before paring some gains. As of 2:29 PM, the stock was trading at ₹2,242.00, up 1.83%. Nestlé India has been on a three-day winning streak.
Nestlé India, a subsidiary of Nestlé S.A., manufactures and markets a wide range of food and beverage products, including dairy, nutritional products, beverages, chocolates, and confectionery.
The company operates under well-known brands like Nescafé, Maggi, and KitKat, catering to the Indian market and export destinations worldwide.
