Nestlé India announced on Friday that it had received a warning from the Securities and Exchange Board of India (SEBI) regarding a violation of insider trading regulations. The breach was attributed to a “designated person” within the company, though further details were not disclosed.
According to Nestlé India, its compliance officer was issued an administrative warning letter by SEBI on Thursday. However, the company refrained from sharing specifics regarding the content of the letter or identifying the individual involved in the breach.
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Despite the regulatory warning, Nestlé India assured that the development would not affect its financial stability or day-to-day operations. “This information has no impact on the financial and operational capabilities,” the Maggi instant noodles maker stated in response to queries from Reuters.
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While Nestlé India has downplayed the impact of the warning, the lack of detailed disclosure raises questions about the nature of the insider trading breach.
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