SEBI Issues Insider Trading Alert to Nestlé India

March 7, 2025: The Securities and Exchange Board of India (SEBI) has issued an administrative notice to Nestlé India Ltd on charges of violations of insider trading rules. The regulator issued the notice following observations of irregularities in compliance against the handling by the company of sensitive, unpublished price-sensitive information (UPSI).

 

Although SEBI has not levied monetary fines at this point, the warning is a cautionary step to maintain tighter compliance with insider trading guidelines. Nestlé India, which is among India's top FMCG giants, has been requested to review its internal procedures in place for accessing UPSI and its reporting structure.

 

Nestlé India replied by asserting its commitment to regulatory compliance and assuring stakeholders that corrective action would be taken in a timely manner. This comes in the wake of SEBI's overall crackdown on insider trading violations across sectors to protect market integrity and investor confidence.

 

The notice points towards the significance of corporate governance in ensuring transparency in India's financial markets. SEBI has once again emphasized that frequent breaches might invite more severe penalties in the future. Investors should keep developments closely under watch.

 

Source: SEBI Official Statement, Economic Times