SEBI penalises Swan Corp executive for insider trading violations

The Securities and Exchange Board of India (SEBI) has imposed a monetary penalty of ₹2 lakh on Rahul Sharma, CEO of Swan LNG and designated person of Swan Corp (formerly Swan Energy Ltd), for insider trading violations.

SEBI’s probe found that Sharma executed trades and contra-trades in the company’s shares between September 1 and November 30, 2023, making unlawful gains of ₹30.25 lakh.

These transactions breached Swan Corp’s insider trading code of conduct, which requires designated persons to obtain

pre-clearance for trades exceeding ₹10 lakh in a quarter. Sharma also failed to make mandatory disclosures under SEBI’s Prohibition of Insider Trading (PIT) Regulations, 2015.

The regulator noted that Sharma had already remitted the unlawful gains of ₹30.25 lakh to SEBI’s Investor Protection and Education Fund (IPEF) in January and February 2025, following regulatory directions.

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Taking into account the facts, circumstances and submissions, SEBI’s adjudicating officer held that Sharma violated Regulation 9(1) read with Clause 6 of Schedule B, and Regulation 7(2)(a) of the PIT Regulations. Accordingly, penalties of ₹1 lakh each were levied under Section 15HB and Section 15A(b) of the SEBI Act, amounting to ₹2 lakh in total.

SEBI, in its order, emphasised the importance of strict compliance with insider trading rules and underlined the accountability of senior executives in listed companies.