Nestle India Gets SEBI Warning For Insider Trading Violation

Nestle India has been issued an administrative warning by the Securities and Exchange Board of India for violating insider trading regulations. The warning, addressed to the company’s Compliance Officer, was issued by the Deputy General Manager of SEBI.

The violation pertains to the SEBI (Prohibition of Insider Trading) Regulations, 2015, specifically involving a contra-trade by a designated person within the company. The letter, received on March 6, 2025, highlights the breach but notes that there is no material impact on the financial, operational, or other activities of Nestle India.

Contra-trade refers to the practice of buying and selling the same security within a short period, typically six months, by a designated person within the company. This is prohibited because it can be used to exploit non-public, sensitive information for short-term gains.

Nestle India, a subsidiary of the global food and beverage giant Nestle S.A., is a leading player in the Indian market. Known for its popular brands like Maggi, Nescafé, and KitKat, the company has a strong presence across various product categories, including dairy, nutrition, and confectionery. Nestle India is committed to delivering high-quality products and promoting sustainable business practices.

Share price of Nestle India rose as much as 1.88% to Rs 2,242.55 apiece. It pared gains to trade 1.76% higher at Rs 2,240 apiece, as of 1:53 a.m. This compares to a 0.013% decline in the NSE Nifty 50.

The stock has fallen 12.53% in the last 12 months. The relative strength index was at 53.

Out of 39 analysts tracking the company, 11 maintain a 'buy' rating, 20 recommend a 'hold' and eight suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 8%.