SEBI Issues Administrative Warning to PC Jeweller MD Balram Garg and Company Secretary Over SDD Non-Compliance — October 31, 2026

The Securities and Exchange Board of India (SEBI) has issued administrative warning letters to PC Jeweller Limited's Managing Director Balram Garg and Company Secretary-cum-Compliance Officer Vijay Panwar.

The regulatory warning stems from lapses concerning the non-maintenance of a structured digital database (SDD), a mandatory compliance requirement under the SEBI (Prohibition of Insider Trading) Regulations, 2015.

Details of the Regulatory Action

According to an exchange disclosure by the retail jewellery player, the market regulator observed deficiencies regarding the company's internal compliance controls around unpublished price-sensitive information (UPSI). The warning was specifically tied to the maintenance of the digital trail for a business update disseminated by the firm for the quarter ended June 30, 2025.

Under SEBI's insider trading norms, listed entities are obligated to maintain an internal digital database with adequate internal controls and checks, including time-stamping and audit trails, to track who had access to UPSI before it was made public. Failure to preserve this audit trail hampers regulatory surveillance and increases vulnerability to unfair market practices.

Key Aspects Highlighted in the Warning

The market watchdog's communication underlined core governance obligations:

• Executive Accountability: SEBI directed the administrative warning directly to the top leadership, naming Managing Director Balram Garg and Compliance Officer Vijay Panwar, highlighting that management bears direct responsibility for regulatory safeguards.
• Database Maintenance: Listed firms must ensure an unalterable, structured database capturing details of individuals and entities privy to corporate announcements and quarterly operational updates prior to stock exchange dissemination.
• Precautionary Measure: While an administrative warning does not immediately levy financial penalties or trading bans, it remains on the regulator's record and serves as a strict caution against repeat non-compliance.

Context and Market Relevance

The scrutiny comes at a sensitive time for PC Jeweller, which has been working to turn around its operational footprint and resolve legacy overhangs. The company had earlier finalized debt resolution processes and one-time settlements with its banking consortium to cut its liabilities.

For retail and institutional participants in the Indian stock market, regulatory vigilance on Structured Digital Databases serves as a critical governance benchmark. The watchdog has consistently stepped up inspections across mid-cap and small-cap firms to verify whether internal IT and compliance infrastructures are robust enough to curb information leakage and front-running.