Relative of Garware Hi-Tech Films Executive Involved in Insider Trading Violation

Garware Hi-Tech Films recently found itself in hot water regarding insider trading issues involving an immediate relative of a former connected person. In a violation of its Code of Conduct, Mrs. Komal Jagdish Vishwakarma, the relative of Mr. V Sasidharan, who left the company’s employment in 2025, executed a series of contra trades involving the company’s shares.

The specific transactions that led to the violation included Mrs. Vishwakarma purchasing 25 shares on September 19, 2025, for Rs. 3384.00, acquiring an additional 10 shares on September 26, 2025, for Rs. 3014.35, and ultimately selling 35 shares on November 21, 2025, for Rs. 4048.25. These transactions were flagged as against the company’s Code of Conduct, primarily due to the relationships involved and the nature of the trades.

Following the company’s internal investigations and review by the Audit Committee, a penalty of Rs. 10,000 was imposed on Mrs. Vishwakarma. Despite the penalty, it was established that the trades were not conducted with access to or use of any Unpublished Price-Sensitive Information (UPSI). Mrs. Vishwakarma herself confirmed that the transactions were inadvertent and not based on any confidential or proprietary information.

The company took swift action to remedy the violation, ensuring compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015. The findings of the investigation and subsequent penalty reflect Garware Hi-Tech Films’ commitment to upholding ethical standards and transparency in its operations. Furthermore, the prompt deposit of the penalty amount to the SEBI – IPEF account by Mrs. Vishwakarma on February 4, 2026, emphasizes the company’s zero-tolerance policy towards insider trading activities.

In conclusion, the incident serves as a stark reminder of the importance of adhering to strict corporate governance practices and regulatory guidelines, especially concerning insider trading. By promptly addressing and rectifying such violations, companies can uphold their integrity and credibility in the eyes of stakeholders and the investing public. Garware Hi-Tech Films’ proactive approach to dealing with this violation underscores its commitment to ethical standards and regulatory compliance while reinforcing the importance of transparency and accountability in corporate conduct.