HUL's Independent Director fined under insider trading regulations
Fast-Moving Consumer Goods (FMCG) major Hindustan Unilever Ltd (HUL) has revealed that a fine of Rs. 9 lakhs has been levied on its independent director, Dr. Ashish Gupta, for breach of SEBI (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations) and the Company's share dealing code. The Company in its regulatory filing disclosed the incident of an inadvertent trade by one of the designated person—Dr. Gupta. The Portfolio Management Services of Gupta's wife Nita Goyal, had traded in its shares on her behalf without her prior approval/intimation. However, as per Ms. Goyal, she was not in possession of any Unpublished Price Sensitive Information (UPSI).
Independent Director has placed all relevant facts before the share dealing code compliance committee of the Company and it was understood that it was an inadvertent trade made without any intent to violate the provisions of SEBI PIT Regulations. However, due to the breach of the Code and PIT Regulations, SDC Compliance Committee has imposed a monetary penalty of Rs 9 lakh on Gupta.
