The Securities and Exchange Board of India (SEBI) has settled an insider trading-related case involving Kaynes Technology India Limited, with the company’s Managing Director, Ramesh Kunhikannan, paying a settlement amount of ₹23.42 lakh.
According to SEBI’s settlement order dated March 27, 2026, the case pertained to alleged violations of insider trading regulations linked to the handling of Unpublished Price Sensitive Information (UPSI) during the period between March 15, 2023 and June 6, 2023.
The matter relates to the company’s financial results announcement on May 16, 2023, where Kaynes Technology reported a sharp rise in net profit—107.94% on a consolidated basis and 111.38% on a standalone basis. Following the announcement, the stock rose 17.05% in the next trading session.
SEBI’s investigation observed lapses in maintaining the Structured Digital Database (SDD), which is required to track access to UPSI. The regulator noted that only two entries were recorded in the SDD during a period when multiple price-sensitive disclosures were made. It was also observed that inconsistencies existed in the SDD access logs submitted by the company.
Based on these findings, SEBI initiated adjudication proceedings against the Managing Director for alleged non-compliance with insider trading regulations, specifically relating to the proper maintenance of SDD systems.
Subsequently, the applicant filed a settlement application without admitting or denying the findings. The High Powered Advisory Committee initially recommended a settlement amount of ₹22.10 lakh, which was later approved at ₹23.42 lakh by SEBI’s panel of Whole Time Members. The amount was paid on March 22, 2026, following which the proceedings were disposed of.
SEBI clarified that the settlement order is subject to conditions and may be reopened if any representations are found to be untrue or if the terms of settlement are breached.