SEBI Issues Show Cause Notice to PG Electroplast CFO and Key Executives Over Alleged Insider Trading Violations — November 13, 2026
The Securities and Exchange Board of India (SEBI) has served a show cause notice (SCN) to senior executives and Key Managerial Personnel (KMPs) of electronic manufacturing services and plastic molding company PG Electroplast Limited. The notice centers on alleged non-compliance with statutory regulations under the SEBI (Prohibition of Insider Trading) Regulations, 2015.
According to regulatory disclosures, the show cause notice, dated November 6, 2026, was received by the company’s officials via email on November 12, 2026. The proceedings stem from an inquiry initiated by SEBI into transactions connected with a key corporate announcement made on July 24, 2024, when the company declared its financial results for the first quarter of FY2025.
Key Individuals Named in the Notice
The markets watchdog has issued notices to four individuals, including current and former senior governance and financial personnel:
- Pramod Gupta: Chief Financial Officer (CFO)
- Ruchika Gupta: Immediate relative of Chief Financial Officer Pramod Gupta
- Sanchay Dubey: Former Company Secretary and Compliance Officer (served up to May 12, 2025)
- Deepesh Kedia: Current Company Secretary and Compliance Officer (effective May 13, 2025)
Focus of SEBI's Inquiry
The regulator’s investigation covers the period from June 1, 2024, to August 31, 2024. The show cause notice cites alleged violations under Sections 11(1), 11(4A), 11B(1), and 11B(2) of the SEBI Act, 1992.
The primary regulatory concerns focus on the handling of unpublished price-sensitive information (UPSI) and internal compliance frameworks. SEBI highlighted alleged lapses under:
- Clause 10 of Schedule B read with Regulation 9(1) of the SEBI (Prohibition of Insider Trading) Regulations, 2015, relating to minimum standards for code of conduct to regulate, monitor, and report trading by designated persons.
- Regulation 3(5), pertaining to structural digital database requirements and controls surrounding UPSI.
- Regulation 9(3), governing the responsibility of the compliance officer and board of directors to ensure compliance with the insider trading framework.
The scrutiny period aligns with the closing and reopening of PG Electroplast's trading window for the quarter ended June 30, 2024. On July 24, 2024, the company had reported a sharp 151.2% year-on-year surge in net profit to ₹84.93 crore and an operating revenue jump of 94.9% to ₹1,320.68 crore, driven by a surge in demand across its room air conditioner (RAC) and consumer appliance segments.
Company Stance and Market Impact
In its formal intimation to stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, PG Electroplast stated that the named noticees are currently examining the details of the communication and will submit their responses within the prescribed statutory timeframe.
The company clarified that the notice has been issued to the individuals in their respective capacities and that no financial liability or operational disruption is expected to fall directly on PG Electroplast Limited.
The development highlights the domestic capital markets regulator's heightened surveillance of trading desks, KMPs, and designated insiders around corporate earnings cycles to ensure structural compliance with insider trading laws.
