Jupiter Wagons has reported an insider trading violation by a senior executive to the Securities and Exchange Board of India (SEBI) on September 19, 2024.

What Happened: The company disclosed that Ajay Kumar Sinha, senior vice president, violated the company’s Insider Trading Code by trading equity shares during the trading window closure period. As per the filing, the incident took place in 2023 between July and August.

The company stated, “Equity shares were traded during the trading window closure period.” He bought 1,000 shares at an average price of around ₹217 and sold them at around ₹361. A warning has been issued to Sinha, directing him not to engage in any dealings in the company’s equity shares in violation of the company’s Code of Conduct and SEBI regulations. Sinha is responsible for looking after the Deori Unit operations.

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As a result of the violation, Sinha was directed to remit 100% profit earned on the said shares to the Investor Protection and Education Fund of SEBI. He has deposited an amount of Rs. 1,50,000 in the designated account of SEBI.

The insider trading violation comes at a time when Jupiter Wagons is undergoing significant changes. On September 17, 2024, the company announced a strategic transformation of its subsidiary, Bonatrans India Private, which was renamed as Jupiter Tatravagonka Railwheel Factory Private. The company also unveiled plans for a substantial capacity expansion for this subsidiary, marked by the establishment of a new manufacturing facility in Odisha.

The following day, Jupiter Wagons declared an interim dividend for the fiscal year 2024-25. The board of directors approved the interim dividend of ₹1 per equity share, setting October 7 as the record date for payment of the dividend.

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