HEG Limited Reveals Violations of Insider Trading Code by Designated Individuals

HEG Limited has recently informed stock exchanges about violations of its Code of Conduct related to trading by Designated Persons (DPs) and their close relatives. The breaches involved Mr. Nivedan Churiwal, Ms. Shubha Churiwal, and Ms. Sudha Churiwal conducting trades without obtaining prior clearances on December 30, 2025. As corrective actions, these individuals were required to immediately return the profits generated from the unauthorized trades and refrain from further trading until compliance with regulations is ensured.

The disclosure of these violations is in line with SEBI regulations, as outlined in SEBI Circular No. SEBI/HO/ISD/ISD/CIR/P/2020/135 issued on July 23, 2020. The non-compliance by the Promoter Group members categorized as Designated Persons, specifically Mr. Nivedan Churiwal, Ms. Shubha Churiwal, and Ms. Sudha Churiwal, was brought to light through the company’s official announcement.

The identified violations across these parties primarily included “Trading without pre-clearance, Contra trade and non-disclosure of the transaction to the Company.” In the case of Mr. Nivedan Churiwal, the transactions involved the purchase of 3,935 shares and subsequent sale of 35 shares on December 30, 2025, with transaction values exceeding ₹10 lakhs. A total profit disgorged of ₹20,97,450 was transferred online on February 21, 2026, as part of rectifying the non-compliant trading activity.

Similarly, Ms. Shubha Churiwal and Ms. Sudha Churiwal were also found to have engaged in unauthorized trades on the same date. Ms. Shubha Churiwal purchased 1,500 shares, while Ms. Sudha Churiwal bought 895 shares. As a consequence, profits were disgorged in the amounts of ₹8,07,923 and ₹4,82,000, respectively, again through online transfers on the same date mentioned.

The company received intimation about these unauthorized trades from the Promoters Group on January 17, 2026, following a Show Cause Notice issued on January 16, 2026. After reviewing the violations and submission of trading data, HEG Limited took several corrective actions to uphold regulatory compliance and corporate governance standards.

These measures included mandating the immediate sale of acquired equity shares, with the proceeds to be deposited/disgorged into SEBI’s designated account. Additionally, the Designated Persons were instructed to inform their Portfolio Management Services (PMS) provider/broker to halt trading of HEG scrip without strict adherence to all applicable regulations and the Code of Conduct. Future compliance with all laws and internal regulations was strongly advised to prevent any recurrence of such violations.

These actions were taken as preventive measures without prejudicing any further scrutiny or action by regulatory authorities.