Capital markets regulator Securities and Exchange Board of India (SEBI) has ordered Krishna Shriram, legal heir of late Siddharth Shriram, to disgorge ₹6.17 crore obtained through insider trading in the securities of Mawana Sugars Ltd (MSL).
The order was issued on Monday following an investigation into trading activities between September 2017 and February 2018.
SEBI launched a probe to assess potential violations of market norms and the Prohibition of Insider Trading (PIT) rules.
The regulator found that Siddharth Shriram, a promoter and special advisor at MSL, had engaged in trading while in possession of unpublished price-sensitive information (UPSI) related to the company’s quarterly financial results for the quarter ending September 30, 2017.
Siddharth Shriram passed away in May 2021, after which his shares were transferred to his son and legal heir, Krishna Shriram. SEBI noted that as of August 13, 2024, Krishna Shriram is listed as the Chairman of the Board of MSL.
Considering the legal precedents around disgorgement, SEBI ruled that Krishna Shriram, as the legal representative of Siddharth Shriram, is responsible for returning the wrongful gains and the loss avoided through insider trading activities.
SEBI has directed Krishna Shriram to repay ₹6.17 crore within 45 days, along with an interest of 12% per annum, calculated from November 24, 2017, until the date of the order. If he fails to pay within the stipulated period, interest will continue to accrue until the full amount is remitted.
The regulator further stated that the recovered amount will be credited to the Investor Education and Protection Fund. This ruling underscores SEBI’s commitment to enforcing insider trading regulations and maintaining market integrity.
On February 19, 2025, Mawana Sugars share price traded 2.85% higher at ₹88.16 at 9:33 AM (IST). Mawana Sugars’s share price reached a 52-week high of ₹136.85, and a 52-week low of ₹82.95. As per BSE, the total traded volume for the stock stood at 1073 shares with a turnover of ₹0.93 lakhs.
At the current price, Mawana Sugars shares are trading at a price-to-earnings (P/E) ratio of 5.95x, based on its trailing 12-month earnings per share (EPS) of ₹14.82, and a price-to-book (P/B) ratio of 0.84, according to exchange data.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 19, 2025, 9:40 AM IST
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