Mumbai8 minutes ago
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Indian Stock Market Regulator SEBI has warned Nestle India on violation of Insider Trading Rules. According to SEBI, a senior Nestle India official has violated these rules. However, the identity of this officer has not been revealed yet.
The Deputy General Manager of SEBI has issued a warning letter to Nestle India under the Contra-Trade Rules. Nestle has refused to give more information related to the case.
Nestle said- no effect on financial activity
Nestle India said that the warning has not affected their business. Regular and financial activities of the company are operating in a normal way.
Shares cannot be sold for 6 months in Contra -trade
In contrast, the insider (eg officer or employee) of a company is forbidden to buy or sell its company shares within a fixed time limit. According to SEBI rules, if an insider buys the company shares, they cannot sell them for at least 6 months. The shares are considered a violation of the contrast-trade rules on selling.
Nestle’s share dropped 13.25% in a year
Nestle’s stock rose by Rs 20.50 (0.93%) on Friday to close at Rs 2,221.70. The company’s stock has fallen 13.25% in the last one year. The company’s market cap is 2.16 lakh crore rupees.
What is insider trading
To earn a profit by getting confidential information related to the company of an employee or officer of a company, buying shares in the stock market is called Insider Trading. SEBI has made strict rules for action in these cases.