Mumbai, April 8 Manappuram Finance Limited on Wednesday said that it has reported a violation of its code of conduct under insider trading rules, involving a transaction carried out through the portfolio management services (PMS) account of one of its independent directors.
The company said the trade was linked to Abhijit Sen, who serves as an Independent and Non-Executive Director and is also the Chairman of the Audit Committee.
According to the disclosure, the transaction took place on February 3, 2026, and involved the purchase of 2,111 shares worth about Rs 6.15 lakh.
Manappuram Finance clarified that the transaction happened due to an operational lapse by the PMS provider, despite clear instructions from the director to block trading in the company’s shares.
The securities were supposed to be placed under a “prohibited category” to avoid any dealings, but this restriction was not implemented properly at the system level.
The company said the director had no role in executing the trade and had not given any instructions for it.
He also confirmed that he did not have access to any unpublished price-sensitive information at the time and had no intention of violating insider trading rules.
However, the trade did not receive prior approval from the compliance officer, which is required for transactions above a certain limit under the SEBI (Prohibition of Insider Trading) Regulations, 2015.
The matter was reviewed internally and presented before the Audit Committee and the board.
After examining the case, the company treated the incident as a technical and unintentional breach.
It sought a written explanation from the director and imposed a penalty of Rs 20,000 as per its internal code of conduct.
The penalty amount has been deposited with the Investor Protection and Education Fund of Securities and Exchange Board of India on April 7, 2026.
The company also stated that no similar violations had been reported since the previous financial year.
Meanwhile, shares of Manappuram Finance closed at Rs 270.60 on Wednesday, gaining Rs 14.75 or 5.77 per cent on the BSE.
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