HEG Limited Reports Insider Trading Violations by Members of Promoter Group

HEG Limited recently made public the discovery of serious breaches in insider trading regulations involving three members of its promoter group. The violations, which took place on December 30, 2025, included unauthorized share transactions that contravened several key compliance measures. The company took action on February 21, 2026, by depositing penalties totaling ₹34.27 lakh with SEBI to rectify the violations.

The three promoter group members involved in the violations were Mr. Nivedan Churiwal, Ms. Shubha Churiwal, and Ms. Sudha Churiwal. These individuals engaged in unauthorized share transactions without seeking pre-clearance, engaged in contra trading, and failed to disclose their actions within the required timeframe. Upon conducting an internal investigation, HEG Limited identified these compliance failures, which were subsequently reported following a show cause notice issued on January 16, 2026.

Following the discovery of the violations, the company took corrective measures to address the breaches. They mandated that the violators sell the shares immediately and deposit the entire proceeds from the sale with SEBI. Additionally, the individuals were required to place restrictions on trading HEG Limited’s scrip with their brokers to prevent any future unauthorized transactions.

To ensure accountability and compliance, financial penalties were imposed on the violators, who promptly transferred the penalty amounts to SEBI on February 21, 2026. HEG Limited emphasized that these corrective actions were taken to uphold regulatory compliance, corporate governance standards, and market integrity. The company noted that such violations had not occurred in previous financial years, indicating that this incident was an isolated but serious breach of compliance.

The robust response from HEG Limited to the insider trading violations underscores the company’s commitment to upholding regulatory standards and implementing effective internal controls. By taking decisive action, including financial penalties, share sales, and operational restrictions, the company demonstrated its dedication to maintaining strict adherence to insider trading regulations.

In a separate development, HEG Limited received disclosure from promoter group member Redrose Vanija LLP regarding an increase in shareholding through market purchases. On February 18, 2026, Redrose Vanija LLP acquired 1,90,000 equity shares worth ₹10,14,29,487.85, demonstrating continued confidence in the graphite electrode manufacturer. This transaction was disclosed under SEBI insider trading regulations, showcasing the promoter group’s ongoing support for HEG Limited.