SEBI Warns Nestle India For Breach In Compliance Norms
SEBI Warns Nestle India For Breach In Compliance Norms
The move stresses adhering to insider trading regulations and upholding market integrity and investor trust
The Securities and Exchange Board of India (SEBI) has warned Nestle India’s compliance officer for the alleged breaches by a senior official.
It underscores the critical importance of robust compliance with insider trading regulations to uphold market integrity and investor trust in India.
Insider trading regulations are not merely procedural formalities but are designed to protect the integrity of the capital market and ensure that all stakeholders operate ethically.
Alay Razvi, Managing Partner, Accord Juris, said, “If proved, it will create a long shadow upon the investors’ confidence and the company’s internal compliance culture. The warning will mean that any lapses on behalf of the company, whether intentional or due to oversight, will not go unnoticed.”
Insider trading is a persistent challenge that regulatory bodies, including SEBI, have been actively addressing for decades.
The SEBI (Prohibition of Insider Trading) Regulations, 2015, mandate companies to maintain a Structured Digital Database (SDD) to track the dissemination of Unpublished Price Sensitive Information (UPSI). They need to ensure compliance to mitigate regulatory risks and maintain transparency.
While considered a burden, strict regulatory oversight is essential to uphold the overall objective of transparency and a level playing field in public markets.
