HEG Limited disclosed violations concerning the Code of Conduct and Prohibition of Insider Trading Regulations involving two related Designated Persons (DPs) and Promoter Group members: Mr. Nivedan Churiwal and Ms. Shubha Churiwal. Both individuals engaged in trading activities without prior clearance and failed to disclose transactions promptly. The company mandated immediate rectification, including selling the acquired shares and disgorging proceeds to the designated account.
Disclosure of Trading Code Violations
HEG Limited issued an official intimation regarding violations of the internal Code of Conduct governing trading in the company’s equity shares by Designated Persons (DPs) and their Immediate Relatives, as per the applicable SEBI PIT Regulations. The report details infractions committed by two key individuals connected to the Promoter Group.
Violation Details: Mr. Nivedan Churiwal
Mr. Nivedan Churiwal (PAN: ACKPC3738M), identified as a Member of the Promoter Group, was found to be in violation. The non-compliance involved trading without pre-clearance and non-disclosure of the transaction to the Company.
- Violation Date: 30.12.2025
- Transaction Type: Purchase of 3,935 shares valued at ₹23,64,852.74.
- Rectification Submission Date: The disclosure in Form B was submitted on 17th January, 2026, following a Show Cause Notice dated 16.01.2026.
- Disgorgement Details: The total amount collected for non-compliance via online transfer was ₹20,97,450, transferred on 21-02-2026.
Violation Details: Ms. Shubha Churiwal
Similarly, Ms. Shubha Churiwal (PAN: AEXPC0890B), also a Member of the Promoter Group, committed the same violations: trading without pre-clearance and non-disclosure of the transaction.
- Violation Date: 30.12.2025
- Transaction Type: Purchase of 1,500 shares valued at ₹9,04,765.16.
- Rectification Submission Date: Disclosure in Form B was submitted on 17th January, 2026.
- Disgorgement Details: The total amount collected for non-compliance via online transfer was ₹8,07,923, transferred on 21-02-2026.
Corrective and Preventive Action Taken by HEG
The Company’s Audit Committee reviewed the facts, considering the trading data, the explanations provided, and the applicable penalty framework. Appropriate action was deemed necessary to ensure regulatory adherence and uphold corporate governance standards.
The corrective measures mandated for both concerned persons include:
- Immediate Sale: Advised to immediately sell the entire equity shares acquired on 30 December 2025 and intimate the Company via Form B within one working day from execution.
- Proceeds Disgorgement: The entire sale proceeds from this transaction must be deposited/disgorged into the designated account of the regulatory body.
- Reporting: Documentary proof of the sale and deposit must be submitted to the Company for Audit Committee records.
- Restriction: Immediate notification to their Portfolio Management Services (PMS) provider or broker to place the HEG scrip on a restricted/negative list to prevent further non-compliant trading.
These directions serve as corrective and preventive measures and are without prejudice to any further action that may be initiated by statutory or regulatory authorities.
Source: BSE
