Manappuram Finance reports inadvertent trade violation, imposes Rs 20,000 penalty
MANAPPURAM Finance has reported a violation of its Code of Conduct under SEBI‘s Prohibition of Insider Trading Regulations, 2015, due to an inadvertent trade.
The trade occurred in the discretionary Portfolio Management Services (PMS) account of a designated person, Mr. Abhijit Sen, who serves as an independent and non-executive director and chairman of the audit committee.
The company stated that the trade, involving 2,111 equity shares valued at ₹614,828.75, was executed on February 3, 2026, due to an operational lapse by the PMS provider. Despite explicit instructions from Mr. Sen to classify the company’s securities as prohibited, the PMS provider failed to implement this restriction at the system level.
The company has examined the matter and initiated corrective actions to prevent recurrence. The transaction was not pre-cleared by the compliance officer as required for trades exceeding the prescribed threshold, but it was confirmed that Mr. Sen did not have any unpublished price-sensitive information at the time of the trade.
As a result, Manappuram Finance has imposed a monetary penalty of ₹20,000 on Mr. Sen, which will be remitted to the SEBI Investor Protection and Education Fund. The company noted the violation as technical and inadvertent, with no intent to contravene regulations.
