HEG addresses insider trading compliance issues with promoter group

Kinjal — Tue, 19 May 2026 13:29:29 +0000

HEG Limited has addressed a compliance issue concerning insider trading regulations involving members of its promoter group. The company identified non-compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015, and its internal code of conduct by Mr. Nivedan Churiwal, Ms. Shubha Churiwal, and Ms. Sudha Churiwal. These individuals executed trades in the company’s equity shares without obtaining prior pre-clearance and failed to make requisite disclosures within the prescribed timelines.

Upon identifying the non-compliance, HEG Limited took corrective measures, including issuing show cause notices, obtaining necessary disclosures, and informing the stock exchanges. The company also directed the disposal of shares, disgorgement of proceeds to SEBI, and restricted further trading by the concerned individuals. The entire proceeds from the transactions were deposited into SEBI’s Investor Protection and Education Fund (IPEF) account.

In response to the compliance issue, HEG Limited’s management stated that the transactions were undertaken inadvertently by the individuals involved. Once aware, the company promptly acted in accordance with the SEBI regulations and its code of conduct. The Board of Directors, following the Audit Committee’s recommendation, took appropriate actions to ensure compliance with applicable laws, without prejudice to any further action by regulatory authorities.

The company has reiterated its commitment to maintaining robust compliance mechanisms and ensuring adherence to statutory provisions and good corporate practices. The actions taken by HEG Limited aim to reinforce its compliance culture and prevent future occurrences of similar issues.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Nivedan Churiwal | Business Upturn

HEG addresses insider trading compliance issues with promoter group