Manappuram Finance reports insider trading code violation after director's PMS share trade

Gold loan financier Manappuram Finance Ltd on Wednesday (April 8) reported a violation of its code of conduct under the SEBI (Prohibition of Insider Trading) Regulations, 2015, involving a trade in the company’s shares through the discretionary portfolio management services (PMS) account of an independent director.

The company said the transaction occurred in the PMS account of Abhijit Sen, Independent and Non-Executive Director and Chairman of the Audit Committee, due to an operational lapse by the PMS provider

despite specific prohibitory instructions.

According to the disclosure, the transaction took place on February 3, 2026, involving 2,111 equity shares of Manappuram Finance valued at ₹6.15 lakh.

Also Read: Manappuram Finance re-rating hinges on turnaround even as Bain deal clears hurdle, analysts say

The company stated that the designated person had issued explicit instructions to the PMS provider to classify the company's securities under the ‘prohibited category’ to prevent any dealing. However, the restriction was not implemented at the system level by the PMS provider, which resulted in the trade.

The director confirmed that the transaction was not undertaken pursuant to any instruction, decision or active involvement on his part. He also stated that he was not in possession of any unpublished price-sensitive information at the time of the trade and had no intent to contravene the PIT regulations or the company’s code.

Manappuram Finance said the transaction was executed without obtaining prior pre-clearance from the compliance officer, as required under the code for trades exceeding the prescribed threshold. The matter was examined by the compliance officer and placed before the Audit Committee and the board.

Also Read: Here's why Manappuram, Muthoot Finance shares fell up to 5% on Monday

Considering the circumstances, the company classified the instance as a technical and inadvertent non-compliance, obtained a written explanation from the designated person, and imposed a monetary penalty of ₹20,000 in accordance with its code of conduct.

The amount has been remitted online to the SEBI Investor Protection and Education Fund (IPEF) on April 7, 2026. The transfer was made by Manappuram Finance Ltd through Axis Bank Ltd, Thrissur branch, with transaction reference number AXISCN1304498210. The company said there have been no previous instances of such violations since the last financial year.

Shares of Manappuram Finance Ltd ended at ₹270.60, up by ₹14.75, or 5.77%, on the BSE today, April 8.