Indian Energy Exchange (IEX) has submitted a report detailing instances of violations of its Code of Conduct for Prevention of Insider Trading. The report highlights contra trades executed by designated persons and their immediate relatives, involving transactions in the company’s scrip. IEX has taken corrective actions, including issuing warning letters and remitting profits from contra trades to the SEBI Investor Protection and Education Fund.
IEX Reports Insider Trading Code Violations
Indian Energy Exchange Limited (IEX) has formally reported violations of its Code of Conduct concerning the SEBI (Prohibition of Insider Trading) Regulations, 2015. The submission details instances where Designated Persons (DPs) and their immediate relatives engaged in activities contrary to the established code.
Key Violations Identified
The report specifically highlights contra trades executed within a six-month period by:
- Rajesh Kumar Gupta (Assistant Vice President, Exchange Technology) and his immediate relative, Sandhya Gupta. These transactions involved the purchase of 750 shares on September 15, 2026, valued at ₹84,833, followed by a sale of 750 shares on September 21, 2026, valued at ₹86,063.
- Sunil Vallabhbhai Chauhan (Assistant Vice President, Exchange Technology) and his immediate relative, Vallabhbhai Kalyanbhai Chauhan. Sunil purchased 200 shares on March 30, 2026, for ₹23,010, and sold 200 shares on September 21, 2026, for ₹22,872. Vallabhbhai purchased 150 shares on March 30, 2026, for ₹17,310, and sold 150 shares on September 21, 2026, for ₹17,151.
In the case of Rajesh Kumar Gupta, a profit of ₹1,230 from a contra trade was disgorged and remitted to the SEBI Investor Protection and Education Fund.
Corrective Actions Taken
Following these violations, IEX has implemented the following corrective measures:
- Warning Letters Issued: Strict warning letters have been issued to the Designated Persons involved, advising them to ensure strict compliance with the Company’s Code of Conduct and cautioning them against future violations by themselves or their immediate relatives.
- Profit Remittance: For Rajesh Kumar Gupta, 100% of the profit earned from the contra trade, amounting to ₹1,230, has been remitted to the SEBI Investor Protection and Education Fund.
- Loss in Other Cases: For Sunil Vallabhbhai Chauhan and Vallabhbhai Kalyanbhai Chauhan, the contra-trade transactions were executed at a loss, meaning no profit was derived, and consequently, no disgorgement was applicable.
The company has stated that there have been no previous instances of violations by these individuals in the last financial year.
Source: BSE
