SEBI revokes exoneration of three in IOCL insider trading case

This order addresses SEBI's review of an Adjudicating Officer's decision to exonerate three individuals of suspected insider trading in Indian Oil Corporation Ltd. (IOCL) shares. SEBI found the initial exoneration erroneous and issued a Show Cause Notice to the individuals to justify their actions before a final penalty is determined.

Arun Kumar Somani, Ramesh Chand Gupta, Tara Devi Gupta, Indian Oil Corporation Ltd. (IOCL)

• SEBI found the Adjudicating Officer's order (dated August 26, 2025) to be erroneous and not in the interest of the securities market.
• SEBI issued a Show Cause Notice (SCN) dated November 20, 2025, requiring the noticees to respond.
• The investigation period was October 3, 2023, to November 15, 2023, with the Unpublished Price Sensitive Information (UPSI) period from October 20, 2023, to October 31, 2023.
• SEBI alleged that Arun Kumar Somani (an IOCL employee) communicated UPSI regarding IOCL's Q2 2023-24 financial results to his in-laws, Ramesh Chand Gupta and Tara Devi Gupta.
• Ramesh Chand Gupta and Tara Devi Gupta made profits of INR 16.70 lacs and INR 10.48 lacs respectively in the derivatives segment during the UPSI period.
• SEBI argued that the profits during the UPSI period were not coincidental, given that the individuals incurred net losses in most other financial years (FY20-FY24).

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