Nestle India under Sebi radar for insider trading

Mumbai: The Securities and Exchange Board of India (SEBI) has issued an administrative warning to FMCG major Nestle India for violating insider trading regulations, the company informed exchanges on Friday.

The warning, issued by the Sebi’s Deputy General Manager, was sent to the company’s Compliance Officer (CCO).Nestle India disclosed in a stock exchange filing that it received the SEBI’s letter on March 6, 2025.

The violation was committed by a designated person within the company. However, the coffee and tea manufacturer clarified that this issue does not have any material impact on its financial, operational, or other business activities.

According to the SEBI, the violation involved a “contra trade”. This happens when an insider buys or sells shares within six months of a previous transaction in the same security, aiming for short-term profits. SEBI regulations strictly prohibit such trades for insiders and their immediate relatives to prevent the misuse of unpublished price-sensitive information.