HEG Limited has formally intimated stock exchanges regarding violations of its Code of Conduct related to trading by Designated Persons (DPs) and their relatives. The announcement details non-compliance by Mr. Nivedan Churiwal, Ms. Shubha Churiwal, and Ms. Sudha Churiwal for trading without pre-clearance on December 30, 2025. Corrective action included mandating the immediate disgorgement of profits and advising against future trading until compliance is ensured.
Disclosure of Trading Code Violations
HEG Limited issued a formal intimation concerning violations of the company’s Code of Conduct governing trading by Designated Persons (DPs) and immediate relatives, as per SEBI regulations. This disclosure was made pursuant to SEBI Circular No. SEBI/HO/ISD/ISD/CIR/P/2020/135 dated July 23, 2020.
Details of Non-Compliant Designated Persons
The report details violations concerning three members belonging to the Promoter Group, who were classified as Designated Persons:
- Mr. Nivedan Churiwal (PAN: ACKPC3738M)
- Ms. Shubha Churiwal (PAN: AEXPC0890B)
- Ms. Sudha Churiwal (PAN: ACDPC4077G)
Observed Violations and Transactions
The primary violation observed for all three DPs was “Trading without pre-clearance, Contra trade and non-disclosure of transaction to the Company.”
Specific transactions noted for violation:
- Mr. Nivedan Churiwal:
- Buy: 3,935 shares on 30.12.2025 (Value: ₹23,64,852.74)
- Sale: 35 shares on 30.12.2025 (Value: ₹21,079.78)
The value of trades exceeded ₹10 lacs in the quarter. Profit disgorged amounted to ₹20,97,450 via online transfer on 21-02-2026.
- Ms. Shubha Churiwal:
- Buy: 1,500 shares on 30.12.2025 (Value: ₹9,04,765.16)
Profit disgorged amounted to ₹8,07,923 via online transfer on 21-02-2026.
- Ms. Sudha Churiwal:
- Buy: 895 shares on 30.12.2025 (Value: ₹5,39,805.52)
Profit disgorged amounted to ₹4,82,000 via online transfer on 21-02-2026.
Intimations regarding these trades were received from the Promoters Group on January 17, 2026, pursuant to a Show Cause Notice dated 16.01.2026.
Corrective and Preventive Action Taken
The Company implemented several measures after reviewing the facts, submissions, and trading data to uphold regulatory compliance and corporate governance standards:
- Mandatory Share Sale and Disgorgement: Concerned persons were advised to immediately sell the entire equity shares acquired on 30 December 2025. The entire sale proceeds arising from this transaction must be deposited/disgorged into the designated account of the SEBI.
- Compliance Reporting: Documentary evidence of the share sale and proof of deposit with SEBI must be submitted to the Company immediately for Audit Committee recording.
- Trading Restriction: DPs were required to immediately inform their Portfolio Management Services (PMS) provider/broker to place the HEG scrip on a restricted/negative list, ensuring no further trading occurs without strict adherence to all applicable regulations and the Code of Conduct.
- Future Adherence: The individuals were further advised to ensure strict and continuous compliance with all applicable laws and internal codes going forward.
These directions were issued as corrective and preventive measures and are without prejudice to any further action initiated by any statutory or regulatory authority.
Source: BSE
