Manappuram Finance Limited has disclosed an inadvertent trade involving equity shares held by an Independent Director. The transaction, executed within a discretionary Portfolio Management Services account, occurred due to an internal operational error at the service provider’s end, despite pre-existing prohibitions. The company has reviewed the incident and confirmed that no price-sensitive information was involved. A monetary penalty of ₹20,000 has been imposed and remitted to the investor protection fund.
Incident Overview
On February 3, 2026, an inadvertent transaction involving 2,111 equity shares of Manappuram Finance Limited was executed within a discretionary portfolio account belonging to Mr. Abhijit Sen, an Independent and Non-Executive Director. The trade, valued at ₹6,14,828.75, occurred despite explicit instructions provided to the service provider to classify company securities under a “Prohibited Category” to prevent any trading activity.
Investigation and Findings
Following a thorough examination, the company determined that the transaction was purely the result of a system-level operational lapse by the Portfolio Management Service provider. It has been confirmed that the Director had no personal involvement in the decision-making for this trade, was not in possession of any unpublished price-sensitive information at the time, and had no intention of violating established governance standards.
Corrective Actions
In accordance with the company’s internal code of conduct, the matter was presented to the Audit Committee and the Board. As a corrective measure, the company has imposed a monetary penalty of ₹20,000. This amount was successfully remitted to the Investor Protection and Education Fund on April 7, 2026. The company has since implemented additional safeguards to ensure that such technical errors by third-party service providers do not recur.
Source: BSE
