Garware Hi-Tech Films reports Code of Conduct violation by designated person
- Garware Hi-Tech Films reported a Code of Conduct violation by a designated person
- Ashok Narayan Dane executed a contra trade involving 16 buys and 26 sells
- Audit Committee imposed a penalty of ₹5,000 deposited to SEBI IPEF account
- Company stated the violation was inadvertent and not based on UPSI
*this image is generated using AI for illustrative purposes only.
Garware Hi-Tech Films Limited reported a violation of its Code of Conduct by a designated person under SEBI (Prohibition of Insider Trading) Regulations, 2015. The breach involved a contra trade executed during a specific trading window, leading to regulatory reporting and internal disciplinary action.
The violation was committed by Ashok Narayan Dane, General Manager in the Production department. During the period from December 5, 2025, to May 15, 2026, he bought 16 equity shares for ₹54,704.10 and sold 26 equity shares for ₹1,14,796.85. This activity constituted a contra trade within the six-month period following the previous buy, violating the company's code.
Audit Committee Action
The matter was placed before the Audit Committee at its meeting held on August 6, 2026. The committee imposed an aggregate penalty of ₹5,000. This amount has been deposited to the SEBI Investor Protection and Education Fund (IPEF) account by the designated person via online transfer on August 21, 2026.
The company stated that the default was inadvertent and without deliberate intention to contravene provisions. It confirmed that the trade was not based on access to or use of any Unpublished Price Sensitive Information (UPSI). However, the actions still constituted a violation of the Code of Conduct and SEBI regulations.
Transaction Details
| Particulars | Details |
|---|---|
| Designated Person | Ashok Narayan Dane |
| Designation | General Manager |
| Functional Role | Production |
| Violation Type | Contra Trade |
| Period of Trade | Dec 5, 2025 to May 15, 2026 |
| Shares Bought | 16 |
| Value Bought | ₹54,704.10 |
| Shares Sold | 26 |
| Value Sold | ₹1,14,796.85 |
| Penalty Imposed | ₹5,000 |
The company noted that there were no previous instances of violations by this individual since the last financial year. The Audit Committee warned him not to repeat such actions in the future.
Historical Stock Returns for Garware Hi-Tech Films
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.99% | +1.04% | +0.32% | +89.43% | +137.99% | +724.45% |
Will SEBI initiate a separate regulatory investigation into Garware Hi-Tech Films' internal compliance controls following this reported breach?
How might this insider trading violation impact institutional investor confidence in Garware Hi-Tech Films' corporate governance standards?
Is the ₹5,000 penalty considered sufficient deterrence by market analysts, or will it prompt calls for stricter enforcement of SEBI's PIT Regulations?
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