SEBI Warns Nestle India Over Insider Trading Violation
The Securities and Exchange Board of India (SEBI) has issued an administrative warning to Nestle India for violating insider trading regulations, as per the company’s stock exchange filing on March 6, 2025.
Mumbai: The Securities and Exchange Board of India (SEBI) has issued an administrative warning to Nestle India for violating insider trading regulations, as per the company’s stock exchange filing on March 6, 2025.
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Nestle India Receives SEBI’s Warning Over Contra Trade Violation
SEBI’s Deputy General Manager sent the warning letter to Nestle India’s Compliance Officer (CCO), highlighting that a designated person within the company engaged in a contra trade—a violation under SEBI’s insider trading rules.
A contra trade occurs when an insider buys or sells shares within six months of a previous transaction, which is strictly prohibited to prevent misuse of unpublished price-sensitive information.
Despite the warning, Nestle India clarified that the issue does not impact its financial performance, operations, or overall business activities.
Nestle India’s Stock Performance & Financial Growth
Following the SEBI warning, Nestle India’s stock showed resilience, gaining over 2% to ₹2,245.80 on the Bombay Stock Exchange (BSE) before settling.
Additionally, the FMCG giant reported a 5% rise in consolidated net profit in Q3 FY25, reaching ₹688 crore compared to ₹655 crore in Q3 FY24. The company attributed its growth to strong sales of powdered and liquid beverages, including Nescafe coffee.
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Key Financial Highlights (Q3 FY25 vs. Q3 FY24):
- Net Profit: ₹688 crore (up 5%)
- Total Revenue from Operations: ₹4,779 crore (up 4%)
Nestle India: A Leading FMCG Giant
A subsidiary of Swiss multinational Nestle S.A., Nestle India is a market leader in the food and beverage industry, known for popular brands like Nescafe, Maggi, and KitKat.
