Bansal Wire Promoter resolves insider trading case with SEBI

A case concerning an alleged breach of insider trading regulations by a promoter of Bansal Wire Industries has been resolved through a settlement agreement. The promoter, Ruchi Gupta, has paid a total amount of Rs 41.41 lakh, comprising of Rs 16.89 lakh towards the settlement and Rs 24.52 lakh as disgorgement along with 12 per cent interest.

Ruchi Gupta, who is related to key individuals of the company, including her brother Pranav Bansal, who serves as the Managing Director and Chief Executive Officer, took the initiative to address potential enforcement actions related to the insider trading violations. By submitting a suo-motu application under Sebi’s settlement rules, Gupta aimed to settle the matter without admitting or denying any alleged misconduct.

The settlement order issued by the Securities and Exchange Board of India (Sebi) ensures that no enforcement actions will be pursued against Ruchi Gupta for the violations in question. However, Sebi retains the authority to undertake further measures if any misrepresentations are uncovered or if the terms of the settlement are breached.

In their order, Sebi’s whole-time members Ananth Narayan G and Amarjeet Singh stated, “it is hereby ordered that any proceedings that may be initiated for the violations as are settled in respect of the applicant (Ruchi Gupta).” This decision was made following the approval of the revised settlement terms submitted by Gupta and the confirmation of the payment of both the settlement and disgorgement amounts by Sebi’s High Powered Advisory Committee.

After the applicant fulfilled the settlement obligations by paying the specified amounts, Sebi acknowledged the compliance and concluded the matter in settlement with Ruchi Gupta. The resolution of this case highlights the significance of adhering to insider trading regulations and the repercussions that may ensue if such rules are infringed upon. By proactively addressing the allegations through the settlement process, Gupta has mitigated the risk of further enforcement actions and has effectively resolved the matter with Sebi.