SEBI v. Krishna Shriram, legal heir of Siddharth Shriram (insider trading in Mawana Sugars, 2025)

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 February 2025 SEBI ordered the son and legal heir of a deceased promoter of Mawana Sugars Limited to disgorge Rs 6,17,25,000 plus interest, the loss his father avoided by selling shares before poor quarterly results. The order imposed no penalty or market restraint.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

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Alleged gain

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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.

What is alleged to have happened

SEBI chief general manager G. Ramar issued the order on 18 February 2025 under section 11 of the SEBI Act and its provision on proceedings after a person's death. The only noticee was Krishna Shriram, the son and legal heir of Siddharth Shriram, a promoter and special advisor of Mawana Sugars Limited who died on 17 May 2021. Krishna Shriram was listed as chairman of the company's board in August 2024.

SEBI investigated Siddharth Shriram's trading from September 2017 to February 2018. A show cause notice of December 2023 alleged that the company's unaudited results for the quarter ended 30 September 2017, announced on 11 December 2017, showed a loss of Rs 1,113 lakh against a profit of Rs 3,418 lakh the previous quarter, that this information became unpublished price sensitive information from 12 October 2017 when the audit began, and that he traded in the shares while holding it.

The order finds that he was an insider and traded while in possession of the information, as shown by his position, his attendance at board meetings, emails and trade data, and that no exception under the insider trading regulations was shown. It fixes the loss avoided at Rs 6,17,25,000. The share price fell from Rs 96 to Rs 87 over the two sessions after the announcement.

Because the shares passed to his son, SEBI directed Krishna Shriram, as legal representative, to disgorge Rs 6,17,25,000 with interest at 12 per cent a year from 24 November 2017, the last trade date, to the date of the order, payable to the investor protection fund within 45 days. No monetary penalty or restraint was imposed.

The record does not show whether the order was appealed, whether the sum was paid, or whether any other person traded on the same information. No criminal case is mentioned.

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. 2025-02-18 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.