SEBI v. Electrocast Sales India Ltd., Madhav Kejriwal and others (insider trading, Electrosteel Castings, 2025)

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.

Report an error in this record (sebi-92045-insider-trading-2025) by email

In February 2025 SEBI disposed of insider-trading proceedings against fifteen promoter-group individuals and entities connected to Electrosteel Castings by a settlement order, on payment of settlement and disgorgement sums and six-month market restraints. The applicants settled without admitting or denying the allegations.

The record

What was ordered

Civil penalty

—

Disgorgement

—

Prejudgment interest

—

Total relief

—

Alleged gain

—

Penalty as published

180m 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

On 20 February 2025 a SEBI chief general manager issued a settlement order covering fifteen applicants in the matter of Electrosteel Castings Limited (ECL). They include members of the Kejriwal family, a group of corporate entities linked to the promoter group, and two executives, Ashutosh Agarwal and Gouri Shankar Rathi. SEBI had investigated trading between 17 May 2020 and 6 January 2021.

A show cause notice of 26 February 2024 alleged that the planned amalgamation of Srikalahasthi Pipes Limited with ECL, announced on 5 October 2020, was unpublished price sensitive information from 18 August to 5 October 2020. SEBI alleged that insiders passed that information on to connected entities, that several applicants traded ECL shares while holding it, and that the group made a notional profit of about Rs. 8.19 crore. The provisions invoked were Regulations 3 and 4 of the PIT Regulations and section 12A(d) and (e) of the SEBI Act.

All fifteen applied to settle in April 2024, proposing to resolve the case without admitting or denying the findings of fact or law. After an internal committee meeting and revised terms, SEBI's high powered advisory committee recommended terms, and the whole-time members approved them in November 2024. A notice of demand followed on 28 November 2024, and SEBI's settlement division confirmed payment on 6 February 2025.

Each applicant paid its own settlement amount, ranging from about Rs. 50.7 lakh to about Rs. 2.08 crore, and most also paid separate disgorgement of the alleged gain plus interest, ranging from roughly Rs. 4.4 lakh to Rs. 2.34 crore. Each also undertook a six-month debarment from the market. SEBI agreed to take no further action over the alleged violations, subject to the usual conditions: untrue representations, breached undertakings or a discrepancy in the settlement terms would let it act again. The order states no overall total; the settlement amounts, added together by this library, come to about Rs. 17.96 crore, excluding disgorgement and interest.

The record does not show any adjudicated finding that the applicants possessed or misused the information, since the order disposes of the case on a settlement basis. It does not show the price effect of the trading, any appeal, or any criminal proceeding.

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. 2025-02-20 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.