SEBI alleges insider trading in RHI Magnesita shares

Who it concerns: Mr. Raj Kumar Agarwal (Noticee), RHI Magnesita India Ltd., Hi-Tech Chemicals Limited, Dalmia OCL Limited, Dalmia Bharat Refractories Limited, Mr. Parmod Sagar (Managing Director of RHI), Mr. Rahul Agarwal, and Mr. Shiv Kumar Choudhary.

What SEBI found or ordered

• SEBI alleged violation of Regulation 4(1) of the SEBI (Prohibition of Insider Trading) Regulations, 2015.
• The alleged Unpublished Price Sensitive Information (UPSI) period was from August 08, 2022, to November 19, 2022.
• The UPSI concerned RHI's proposed acquisition of 100% equity shares of Dalmia OCL Limited via a share swap agreement valued at approximately Rs. 1,708 Crore.
• SEBI noted that Mr. Agarwal was the promoter and director of Hi-Tech Chemicals Limited, whose refractory business was acquired by RHI in a transaction valued at Rs. 621 Crore.
• Call Data Records (CDR) and IPDR analysis indicated contact between Mr. Agarwal and Mr. Parmod Sagar (MD of RHI) during the UPSI period.
• A Show Cause Notice was issued on April 10, 2026, and the Adjudicating Officer was appointed on April 02, 2026.

Also in the document

• The investigation period covered July 08, 2022, to December 19, 2022.
• SEBI observed that the price of RHI shares rose by 8.91% on the first trading day after the corporate announcement of the acquisition.
• The order notes that the handing over formalities for the Hi-Tech Chemicals deal were completed in January 2023, suggesting ongoing interactions between the parties during the UPSI period of the Dalmia OCL deal.