SEBI Imposes Rs 2 Lakh Penalty On Swan Corp Executive For Insider Trading Violations

2025-09-30 09:30:25

(MENAFN- IANS) New Delhi, Sep 30 (IANS) Market regulator Securities and Exchange Board of India (SEBI) on Tuesday imposed a penalty of Rs 2 lakh on Rahul Sharma, CEO of Swan LNG and designated person of Swan Corp (formerly Swan Energy Limited), for insider trading violations.

SEBI's investigation found that Sharma carried out trades and contra-trades in Swan Corp shares between September 1 and November 30, 2023, earning unlawful gains of Rs 30.25 lakh.

“During investigation, SEBI observed trades and contra trades by Rahul Sharma (hereinafter referred as 'Noticee'). Pursuant to the findings of investigation, SEBI initiated adjudication proceedings against the Noticee,” the market regulator said.

These transactions breached the company's insider trading code, which requires designated persons to seek pre-clearance for trades exceeding Rs 10 lakh in a quarter.

“The trades executed by the Noticee during the investigation period exceeded Rs 10 lakh in value. In this regard, the Company submitted that Noticee failed to obtain pre-clearance,” SEBI said in its order.

Sharma also failed to make mandatory disclosures under SEBI's Prohibition of Insider Trading (PIT) Regulations, 2015.

The regulator noted that Sharma had already returned the Rs 30.25 lakh gains to SEBI's Investor Protection and Education Fund (IPEF) in January and February 2025, following its directions.

“It was found that the Noticee had executed trades and contra trades within IP in the scrip of SEL,” SEBI said.

“Noticee traded in high volumes and made unlawful profits amounting to Rs 30,25,133,” the market regulator added.

Considering the circumstances, SEBI's adjudicating officer concluded that Sharma violated specific provisions of the PIT Regulations.

Penalties of Rs 1 lakh each were levied under Section 15HB and Section 15A(b) of the SEBI Act, totalling Rs 2 lakh.

SEBI emphasised the importance of strict adherence to insider trading rules and highlighted that senior executives of listed companies are accountable for compliance.

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