Torrent Power’s Rishi Shah Pays Rs39 Lakh To Settle Insider Trading Case with SEBI

Moneylife Digital Team 24 September 2025

Investor Interest

Torrent Power Ltd’s general manager for finance Rishi Sudhirbhai Shah has paid Rs39 lakh to settle an insider trading case with market regulator Securities and Exchange Board of India (SEBI).

The settlement, which was concluded after Mr Shah agreed to pay Rs39 lakh, was approved through SEBI’s structured mechanism for negotiated resolution of cases. The order, signed by adjudicating officer (AO) Jai Sebastian on 23 September 2025, brings an end to proceedings that had been initiated earlier this year, although SEBI has kept the option open to revive the matter if settlement conditions are breached.

The case arose from allegations that Mr Shah was in possession of and had communicated unpublished price-sensitive information (UPSI) relating to the financial results of Torrent Power for the quarter ending December 2022. Under the SEBI (Prohibition of Insider Trading) Regulations, 2015, trading while in possession of UPSI or communicating such information to others is strictly prohibited. SEBI charged Mr Shah with violating Regulation 3(1) of the PIT Regulations, which bars insiders from communicating UPSI, and Section 12A(e) of the SEBI Act, 1992, which prohibits dealing in securities while in possession of such information.

A show-cause notice (SCN) was issued to Mr Shah on 11 March 2025, calling upon him to explain why an inquiry should not be held and why a penalty should not be imposed under Section 15G of the SEBI Act. Section 15G provides for substantial monetary penalties in cases of insider trading, with fines ranging from Rs10 lakh to Rs25 crore or three times the amount of profits made, whichever is higher.

While the adjudication proceedings were pending, Mr Shah sought to resolve the matter through SEBI’s settlement process which allows alleged violators to conclude proceedings without admitting or denying guilt. He filed a settlement application on 8 April 2025, under the SEBI (Settlement Proceedings) Regulations, 2018. The process requires applicants to propose terms of settlement, which are then examined by SEBI’s internal committee. Following discussions on 6 June 2025, Mr Shah submitted revised settlement terms on 17 June 2025.

The case was subsequently referred to SEBI’s high powered advisory committee (HPAC. On 3 July 2025, the HPAC recommended that the matter be settled on payment of Rs39 lakh. This recommendation was later placed before SEBI’s panel of whole-time members (WTMs), which acts as the final approving authority. The panel accepted the proposal on 5 September 2025, following which a demand notice was issued to Mr Shah.

In its order, SEBI noted that the payment of the settlement amount effectively brought closure to the adjudication proceedings. However, the regulator made it clear that the settlement was without prejudice to SEBI’s right to take further enforcement actions in future. The order specifies that if any of Mr Shah’s representations during the settlement process are later found to be untrue, or if he fails to comply with undertakings or waivers given as part of the settlement, SEBI may restore or initiate fresh proceedings against him.

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