MTAR Technologies has reported a violation of its Insider Trading Policy. A designated person traded company shares without seeking pre-clearance and entered into a contra trade. The individual has been directed to disgorge the profits amounting to ₹73,224 to the SEBI Investor Protection and Education Fund. A strict warning has been issued to prevent future violations.
Insider Trading Violation
MTAR Technologies has identified a violation of its Code of Conduct related to insider trading. The violation involved a designated person trading in the company’s shares without obtaining the necessary pre-clearance and engaging in a contra trade transaction.
Details of the Violation
The company reported that the designated person failed to seek pre-clearance before trading and also entered into a contra trade. These actions are in direct violation of the company’s insider trading policies and regulations.
Action Taken
Following the discovery of the violation, MTAR Technologies, in consultation with its Audit Committee, provided the designated person with an opportunity to explain the transactions. The Board acknowledged that the transactions were inadvertent and resulted from a lack of awareness regarding the applicable regulations. The individual responsible has been directed to disgorge the profits amounting to ₹73,224 from the transactions to the SEBI Investor Protection and Education Fund. This transfer was completed online on February 6, 2026.
Additionally, a strict warning has been issued, emphasizing that any future non-compliance will be viewed with severe consequences, potentially including penalties.
Explanation from the Designated Person
An explanation was requested from the individual involved, who admitted to the violation. The individual clarified that the transactions occurred immediately after the IPO in 2021 and were executed inadvertently without any malicious intent.
Details of Transactions
The following transactions were identified as part of the violation:
- September 13, 2021: Sale of 798 shares
- August 16, 2021: Purchase of 798 shares
- August 10, 2021: Sale of 500 shares
- August 10, 2021: Purchase of 500 shares
- August 9, 2021: Sale of 4337 shares
- August 9, 2021: Purchase of 4337 shares
Source: BSE
