Sumitomo Chemical India Limited reports a violation of its Code of Conduct under the Prohibition of Insider Trading Regulations, 2015. An employee, Mr. Kaushal Shah, pledged 250 shares without pre-clearance. A penalty of ₹5,000 has been imposed, and the amount has been recovered by the company on January 2, 2026. This report confirms the company’s enforcement of insider trading policies.
Violation of Conduct Code
Sumitomo Chemical India Limited has identified and addressed a violation of its internal Code of Conduct related to insider trading. The violation concerns the pledging of company shares by a Designated Person (DP), Mr. Kaushal Shah, without the requisite pre-clearance.
Details of the Violation
Mr. Kaushal Shah, General Manager at the Bhavnagar Plant, pledged 250 shares during the week ended November 14, 2025, without obtaining prior clearance from the Compliance Officer. This action contravened the company’s established procedures for preventing insider trading.
Corrective Action and Penalty
Upon discovering the violation, Sumitomo Chemical India Limited took immediate corrective action. A penalty of ₹5,000 was imposed on Mr. Kaushal Shah. The company confirms that this penalty amount has been successfully recovered from the employee as of January 2, 2026. This action underscores the Company’s seriousness in maintaining the highest standards of compliance.
Financial Details of Recovery
The recovered amount of ₹5,000 was transferred to the company via online transfer. Here are the transaction details:
- Name of Transferor: Sumitomo Chemical India Limited
- Bank Name: State Bank of India
- Branch: Jogeshwari (West), Mumbai
- Account Number: 10227272076
- UTR/Transaction Reference Number: 260102256604851
- Transaction Date: 02/01/2026
Source: BSE
