SEBI v. Ashish P. Patel (insider trading, Radhe Developers (India) Ltd, 2022)

Judgment entered

✓ Checked against the primary document on October 8, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, in a single reading of the order; an independent second reading of 60 SEBI records agreed on every field for 56, the four misses being penalty amounts; a later sample of 50 of the SEBI records added on 9 October agreed on every field for 46. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In June 2022 a SEBI adjudicating officer fined the managing director of Radhe Developers (India) Ltd Rs 10,00,000 for buying shares just before the company announced sharply higher results in May 2008. The earlier 2013 penalty had been set aside by the Securities Appellate Tribunal.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

—

Alleged gain

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Penalty as published

1m INR

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars. This regulator states penalties in INR. The figure is recorded as published and is not converted, so it does not appear in the USD totals or medians used elsewhere on this site.

What is alleged to have happened

An adjudicating officer of SEBI issued this order on 29 June 2022 against Ashish P. Patel, managing director, promoter and compliance officer of Radhe Developers (India) Ltd, a company listed on BSE. SEBI had penalised him Rs 13,98,264 in March 2013, but the Securities Appellate Tribunal quashed that order in February 2014 and sent the case back for a fresh decision.

The show cause notice of March 2011 alleged that between 26 March and 7 May 2008 Mr Patel bought shares just before the company announced its unaudited results on 2 May 2008 and sold some soon after. The results showed quarterly income rising from about Rs 4.5 million to Rs 35.27 million and net profit from Rs 0.26 million to Rs 17.74 million. SEBI said he bought 55,885 shares from 3 April to the board meeting of 30 April and sold 6,300 afterwards, and the share price rose from Rs 47.25 to Rs 165.35 over the period.

The order finds that, as an insider, he bought 25,885 shares while aware of the unpublished price sensitive information, breaching Regulation 3(i) of the 1992 insider trading regulations read with Regulation 12(1) of the 2015 regulations. It computes his benefit at about Rs 3,62,390, from the difference between the closing price after the announcement and his average purchase price, and stresses that a managing director and compliance officer should set an example.

The penalty was Rs 10,00,000 under section 15G(i) of the SEBI Act, payable within 45 days. A separate adjudication order, not covered here, deals with the company's and other directors' compliance duties.

The record does not show whether the penalty was paid or appealed again, or any criminal case. The order does not give details of how he explained his purchases beyond his reply.

This library tags the matter as insider trading. The tagging is ours, not the regulator's.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the order.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Insider trading — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2022-06-29 SEBI adjudication order (after remand by SAT)

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEBI order

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added October 8, 2026. submit a correction.