HEG Limited has disclosed significant violations of insider trading regulations by three members of its promoter group, highlighting serious compliance breaches that occurred on December 30, 2025. The company filed a comprehensive report with stock exchanges on February 21, 2026, detailing unauthorized share transactions and subsequent corrective measures.

Violation Details and Involved Parties

The violations involved three promoter group members who conducted unauthorized trading activities on December 30, 2025. The company identified multiple compliance failures including trading without pre-clearance, contra trading, and non-disclosure of transactions.

Regulatory Compliance Failures

The company's investigation revealed systematic violations of SEBI's Prohibition of Insider Trading Regulations, 2015. All three individuals failed to obtain mandatory pre-clearance before executing their trades and did not disclose their transactions to the company within the stipulated timeframe. The violations were discovered through the company's internal monitoring systems and reported following a show cause notice dated January 16, 2026.

The promoter group members only submitted their trading disclosures in Form B on January 17, 2026, after receiving the show cause notice, significantly exceeding the required disclosure timeline under Regulation 7 of SEBI PIT Regulations.

Company's Corrective Actions

HEG Limited implemented comprehensive corrective measures following the discovery of these violations. The company mandated that all violators immediately sell their acquired shares and deposit the entire sale proceeds with SEBI. Additionally, the individuals were required to place HEG Limited's scrip on their brokers' restricted lists to prevent future unauthorized trading.

Financial Penalties and SEBI Deposits

The company ensured that significant financial penalties were imposed and collected from the violators. All penalty amounts were transferred to SEBI's designated account through online transactions on February 21, 2026.

Governance and Compliance Framework

The company emphasized that these corrective measures were implemented to ensure regulatory compliance, uphold corporate governance standards, and maintain market integrity. HEG Limited confirmed that no previous instances of similar violations had occurred since the last financial year, indicating that this represents an isolated but serious compliance breach.

The company's response demonstrates its commitment to maintaining strict adherence to insider trading regulations and implementing robust internal controls. The comprehensive nature of the corrective actions, including financial penalties and operational restrictions, reflects the seriousness with which the company treats regulatory compliance violations.

HEG Limited has received disclosure from promoter group member Redrose Vanija LLP regarding an increase in shareholding through market purchase. The transaction, completed on February 18, 2026, demonstrates continued promoter confidence in the graphite electrode manufacturer.

Transaction Details

Redrose Vanija LLP executed a significant equity purchase on the National Stock Exchange, acquiring additional shares at market rates. The transaction details highlight the scale and value of this promoter group investment.

Shareholding Changes

The acquisition resulted in a measurable increase in Redrose Vanija LLP's ownership stake in HEG Limited. The promoter group member's holding expanded from a substantial base to an even stronger position.

Regulatory Compliance

The disclosure was made under Regulation 7(2) read with Regulation 6(2) of the SEBI (Prohibition of Insider Trading) Regulations, 2015. HEG Limited's Company Secretary Vivek Chaudhary communicated the transaction details to both BSE Limited and National Stock Exchange of India Limited on the same day.

Redrose Vanija LLP, identified by LLPIN ACL-8811 and PAN ABKFR7646A, is headquartered in New Delhi. The entity is classified as a member of the promoter group under SEBI regulations, and the transaction was executed through on-market purchase at prevailing market rates.

Market Transaction Execution

The shares were purchased entirely through the National Stock Exchange at ₹533.84 per share, representing a market-based acquisition. The transaction value excludes taxes, brokerage, and other charges as per standard disclosure norms. This market purchase approach indicates the promoter group's willingness to acquire shares at current market valuations, reflecting confidence in the company's prospects.