Sebi orders settlement of insider trading case involving Torrent Power scrip

Sebi passes settlement order in Torrent Power insider trading matter

An alleged insider trading case by a person involving Torrent Power shares has been settled with Securities and Exchange Board of India (Sebi), according to an order shared by the regulator on September 23.

Sebi had initiated adjudication proceedings against a noticee - Rishi Sudhirbhai Shah - for allegedly communicating unpublished price sensitive information (UPSI) related to Torrent Power’s December 2022 quarterly results. A show-cause notice was issued in March 2025 under provisions of the Sebi Act and insider trading regulations. As per Sebi order, “SCN was issued to the Noticee on account of allegations of communicating the UPSI related to financial results of Torrent Power Limited for the quarter ended December 2022”.

Pending proceedings, Shah filed a settlement application in April 2025, seeking to settle the matter without admitting or denying the charges. After deliberations with Sebi’s Internal Committee and recommendations from the High-Powered Advisory Committee (HPAC), the case was settled on payment of Rs 39 lakh as a settlement amount.

The panel of Whole-Time members approved the terms on September 5, 2025, and Shah remitted the settlement amount on September 15, 2025.

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Parties can settle case with Sebi if the allegations do not fall under market wide impact category. However, the regulator retains right to reopen the case if any misrepresentation is made or breaches of settlement undertakings are discovered later.