SEBI v. Rashesh Purohit and others (insider trading ahead of a rating downgrade, TV Vision, 2023)

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 March 2023 a SEBI whole-time member found that a relative of the managing director of TV Vision Ltd, and two companies, sold the company's shares in September 2017 before news of a credit rating downgrade became public. He ordered disgorgement of about Rs 47.4 lakh with interest, market restraints, and penalties of Rs 50 lakh in total.

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

—

Penalty as published

5m 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

TV Vision Ltd (TVVL) is listed on the NSE and BSE. On 27 September 2017 it announced that the rating agency CARE had downgraded its Rs 24.39 crore term loan from BBB- (SO) to D, a default-level rating. SEBI investigated trading between 1 and 27 September 2017. The noticees were Rashesh Purohit, a relative of the company's managing director Markand Adhikari, Keynote Enterprises Private Limited, a company in which Mr Purohit and his wife were shareholder-directors, Inayata Constructions Private Limited, and Chitra Deshmukh, a director of Inayata.

SEBI alleged that the downgrade information was unpublished price sensitive information, that Mr Purohit learned it through his family connection and from his brother, and that he sold shares in his own account and Keynote's, while Ms Deshmukh sold for Inayata, shortly before it became public, reversing a long-held investment stance. The noticees argued their sales were independent and unrelated to the information and that no victim had been identified.

The whole-time member found insider trading established under section 12A of the SEBI Act and the 2015 insider trading regulations. He narrowed the relevant period to 1 to 21 September 2017 and said the pattern, the contacts between the people involved, and the large share of daily volume they accounted for pointed to trading on the information. He rejected the point about unidentified victims, holding that insider trading harms the market as a whole.

The directions restrain all four from the securities market for six months and from dealing in TVVL securities for one year. Mr Purohit, Keynote and Inayata must disgorge the loss avoided with simple interest at 9 per cent a year from 21 September 2017: about Rs 19.15 lakh, Rs 24.17 lakh and Rs 4.05 lakh, a total of roughly Rs 47.4 lakh. Penalties under section 15G are Rs 20 lakh for Mr Purohit and Rs 10 lakh each for the other three, Rs 50 lakh in total.

The record does not show appeals, payment, or any action against the managing director, who is named only as a link in the chain. It describes no criminal case.

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. 2023-03-24 SEBI order

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.