Mumbai, March 7 (IANS). The Securities and Exchange Board of India (SEBI) has issued an administrative warning to FMCG chief ‘Nestle India’ for violation of Insider Trading Rules. The company informed the exchanges on Friday about this.
The warning issued by the Deputy General Manager of SEBI was sent to the Compliance Officer (CCO) of the company. Nestle India revealed in the stock exchange filing that the company received a SEBI letter on 6 March 2025.
This violation was done by a nominated person within the company. However, the coffee and tea manufacturer clarified that the issue has no effect on its financial, operations or other business activities.
According to SEBI, the violation included “Contra Trade”. This happens when an insider buys or sells shares within six months of the previous transaction in the same security for the purpose of short-term profit.
SEBI rules strictly prohibit trading such trades for insider and their relatives to prevent misuse of unplaced price sensitive information. The six -month restriction period is calculated from the date of initial transaction.
Despite the warning, Nestle India shares performed well in the market. On Friday, the company’s stock rose by more than 2 percent to Rs 2,245.80 on Bombay Stock Exchange (BSE).
Meanwhile, the FMCG company recorded a 5 percent increase in its consolidated net profit in the third quarter of the current financial year (FY 2025), which stood at Rs 688 crore as compared to Rs 655 crore in the same period of the previous financial year (third quarter of FY 2024).
According to the exchange filing on 31 January, the main reason behind the profit was the more sales of its powder and liquid beverages including the popular Neskfe Coffee brand.
The company’s total revenue from operations for the quarter reached Rs 4,779 crore, which shows an increase of Rs 4,600 crore from Rs 4,600 crore in the same quarter of the previous year (third quarter of FY 2024).
Swiss multinational company Nestle S.A. The subsidiary is known for its popular brands like Nestle India, Nescafe, Maggi and KitKat. The company manufactures and marketing a wide range of food and drink products.
-IANS
SKT/ABM
