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Informist, Tuesday, Sept. 23, 2025

--Rishi Shah pays SEBI INR 4 mln to settle Torrent Power insider trading case

--SEBI: Rishi Shah allegedly communicated unpublished Torrent Power earnings

NEW DELHI - Rishi Shah, an insider in Torrent Power Ltd., has paid INR 3.9 million to settle a show-cause notice on alleged breach of insider trading rules, the Securities and Exchange Board of India said in a settlement order Tuesday. SEBI had issued a show-cause notice to Shah in March alleging that he had violated the prohibition of insider trading regulations by communicating unpublished price-sensitive information related to the financial results of the company for the quarter ended Dec. 31, 2022.

This communication may have resulted in trading activity in the shares of Torrent Power and caught the attention of stock exchanges or SEBI, which culminated in the show-cause notice. SEBI did not specify in the settlement order Shah's designation or position in Torrent Power. SEBI also did not clarify whether trades were executed by Shah or anyone else on the basis of the unpublished price sensitive earnings information.

Typically, key management personnel are considered definite insiders under the regulations. The definition of insider also encompasses other employees on a case-to-case basis depending on whether they are privy to unpublished price-sensitive information. According to SEBI's insider trading regulations, from the time any critical information is created within a company till the time it is made public, it cannot be communicated to anyone who does not need to know it. Such information is considered to be unpublished price-sensitive information and no trading in shares of the company is permitted by those privy to it.

Shares of Torrent Power closed at INR 1,279.30 Tuesday, up 0.8%, on the National Stock Exchange.  End

Reported by Rajesh Gajra

Edited by Rajeev Pai

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