Bansal Wire Industries Promoter Ruchi Gupta Pays Rs16.89 Lakh To Settle Insider Trading Case with SEBI
Moneylife Digital Team 06 May 2025
Ruchi Gupta, a promoter of Bansal Wire Industries Ltd, paid Rs16.89 lakh to settle an insider trading case with Securities and Exchange Board of India (SEBI). The market regulator also directed Ms Gupta to disgorge Rs24.52 lakh with 12% interest calculated from 15 July 2024 to 3 September 2024, the period between the alleged default and the company’s action.
 
Ms Gupta, an immediate relative of several designated persons at the company, including her brother Pranav Bansal, the managing director (MD) and chief executive officer (CEO) of Bansal Wire Industries, filed a suo motu application under SEBI settlement regulations. She sought to resolve any enforcement action that could be initiated against her by proposing a settlement without admitting or denying SEBI’s findings.
 
The case arose following the listing of Bansal Wire Industries on the National Stock Exchange (NSE) and BSE, during which a mandatory trading window closure was in effect from 10 July 2024 to 2 August 2024. Despite this, Ms Gupta purchased 27,000 company shares on 15th July, 19th July and 22 July 2024, when the trading window was still closed. The average purchase price of these trades was Rs349.62 per share. As an immediate relative of designated persons within the company, Ms Gupta was bound by the same restrictions on trading during the blackout period.
 
On 2 September 2024, she voluntarily informed the company’s compliance officer about the trades and deposited Rs50,000 as a penalty under the company’s internal code of conduct. The amount was credited to the Investor Protection and Education Fund on 4 September 2024.
 
Subsequently, discussions were held between her representatives and the SEBI internal committee (IC) on 25 October 2024 and 8 January 2025. A revised settlement proposal was submitted on 13 January 2025. The terms included a settlement amount of Rs16.89 lakh, disgorgement of unlawful gains amounting to Rs24.13 lakh, and interest of Rs39,670 calculated at 12% simple interest from the date of the first trade until corrective action was taken.
 
The high-powered advisory committee (HPAC) recommended accepting the proposal in its meeting on 29 January 2025. The recommendation was approved by SEBI’s panel of whole-time members (WTMs) on 24 February 2025, and a notice of demand was issued on 3 March 2025. Ms Gupta remitted the entire amount on 24 March 2025, and SEBI confirmed receipt of the funds.
 
Accordingly, SEBI issued a settlement order on 2 May 2025, confirming that no enforcement action will be initiated against Ms Gupta for the above-mentioned violations. However, the order clarified that it is without prejudice to SEBI’s rights to initiate action if any misrepresentation is found, settlement conditions are breached, or discrepancies in the settlement calculations are later discovered.
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