JSW Energy ends in red after SEBI’s insider trading warning letter

The share closed in the red at ₹690.50 on the NSE on Friday, down 1.24% from the previous close of ₹699.15.

The company revealed that the warning letter pertains to certain trades executed by some “designated persons” and their immediate relatives, which violated SEBI’s Prohibition of Insider Trading Regulations, 2015 and the SEBI Act 1992.

JSW Energy disclosed that it has taken necessary actions against the concerned individuals as per the SEBI Regulations, 2015.

As per the Act, any person found violating the Insider trading regulation will be penalised with a fine in the range of ₹10 lakh to ₹25 crore, or three times the profit made from insider trading, whichever is the larger sum.

The administrative warning letter from SEBI was dated November 4 and was received by the company on Thursday, November 21, the statement said.

JSW Energy clarified that the warning letter has no impact, financial or operational, on the company.

While the company’s shares slumped 5.7% this week, it gained 62.25% in the past year.

According to the NSE, the company has a total market capitalisation of ₹1.21 lakh crore as of November 22.

JSW Energy is a private-sector power producer, with diversified assets in power generation, transmission and trading.