SEBI v. Deepak Shaw (insider trading, Electrosteel Castings, 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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A SEBI adjudicating officer found that a consultant at the financial adviser to the Electrosteel Castings and Srikalahasthi Pipes merger bought and sold Electrosteel shares while holding unpublished price sensitive information about it, and imposed a penalty of Rs 10 lakh. His profit of about Rs 1.36 lakh had already been paid to SEBI's investor fund.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

—

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

On 3 July 2025 a SEBI adjudicating officer issued an order against Deepak Shaw, a consultant at the advisory firm Baker Tilly DHC Business, in the matter of suspected insider trading in Electrosteel Castings Limited (ECL). It is one of about twenty enforcement matters arising from the same investigation, which looked at trading between 17 May 2020 and 6 January 2021 ahead of the announced merger of Srikalahasthi Pipes Limited into ECL.

SEBI treated the proposed merger as unpublished price sensitive information from an internal email of 18 August 2020 until the board's approval on 5 October 2020. It alleged that Mr Shaw, whose firm advised on the merger, worked on the process and prepared a pre-board activity schedule, and so was a connected person and insider. It said he bought 19,003 ECL shares on six days between 26 August and 21 September 2020 and sold all of them on 5 October 2020, making an actual profit of Rs 1,35,727, with ECL his most-traded stock in the period. The charge was Regulation 4(1) of the PIT Regulations and section 12A(e) of the SEBI Act.

Mr Shaw replied that the trades were ordinary investing and that earlier work on a possible transaction by other advisers meant the information was not new. The officer did not accept this. He found that Mr Shaw was an insider who traded while holding the information, noting that his employer's own policies forbade dealing in a client's shares.

Applying section 15G of the SEBI Act, the officer imposed a penalty of Rs 10,00,000. He recorded that no investor loss was shown, that there was no repeat default, and that the profit had already been remitted by the firm to SEBI's Investor Protection and Education Fund.

The record does not show whether Mr Shaw appealed or paid. Other people in the same investigation were dealt with in separate orders, including a settlement covering the promoter group. This order is a regulatory penalty, not a criminal conviction.

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. 2025-07-03 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.