SEBI v. Amit Kumar Rathi and others (Electrosteel Castings settlement, 2024)

Settled

✓ 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 July 2024 SEBI disposed of insider trading proceedings against three members of the promoter group of Electrosteel Castings through a settlement order. The settlement amount was Rs 1,36,50,000 in total (Rs 45,50,000 each), with notional profits to be disgorged separately with interest.

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

13.7m 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

A SEBI adjudicating officer, N. Hariharan, issued a settlement order on 12 July 2024. The applicants were Amit Kumar Rathi, Anjushree Rathi and Saroj Rathi, described as promoter or promoter group entities of Electrosteel Castings Limited. SEBI's investigation covered trading in the company's shares from May 2020 to January 2021, ahead of the announcement of a proposed merger of Srikalahasthi Pipes Limited into it.

SEBI alleged that the three held unpublished price sensitive information about the merger and bought 2,00,000 shares between them (1,00,000, 50,000 and 50,000) before it was public. It put their combined notional profit at Rs 12,36,338.40 and alleged breach of Regulation 4(1) of the insider trading regulations and section 12A(e) of the SEBI Act. A show cause notice followed in December 2023, and the applicants asked to settle in February 2024.

Under the settlement regulations of 2018, an internal committee computed indicative terms and an advisory committee and a panel of whole-time members approved revised ones in 2024. Each applicant paid a settlement amount of Rs 45,50,000 (Rs 1,36,50,000 in all). In addition they paid disgorgement of the notional profit: Rs 6,54,896.80 for Mr Rathi, Rs 2,91,141.60 for Ms Anjushree Rathi and Rs 2,90,300 for Ms Saroj Rathi, plus simple interest at 12 per cent a year of Rs 2,75,057, Rs 1,19,368 and Rs 1,19,023 respectively.

SEBI recorded receipt of the amounts and disposed of the adjudication proceedings. A settlement is not a finding of violation. The order reserves SEBI's right to restore the proceedings if a representation proves untrue, an undertaking is breached or the terms were miscalculated.

The record does not show any finding on whether the information was in fact price sensitive, any restriction imposed on the applicants, or any criminal case. The order text read for this record does not use the phrase about neither admitting nor denying, so the library does not describe the terms in those words.

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. 2024-07-12 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
• Order (PDF)

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.