ERP Soft loses insider-trading compliance data after tech failure
The SDD system crashed on 29 June with no backup, but financial records and operations are intact.
What's new
- SDD compliance software crashed on 29 June, losing all insider-trading records.
- No backup was available for the affected period; data is being reconstructed.
- Failure is confined to SDD; financial and operational systems unaffected.
Why this matters
For a ₹24 crore nano-cap already seeing revenue shrink 39%, this compliance lapse raises governance questions, though it is not financially material. The company's corrective measures are standard, but the lack of backup is a basic oversight.
What we're watching
- Whether SEBI takes notice of the compliance gap.
- Speed of data reconstruction and restoration of SDD.
- Any further lapses in internal controls at a small company.
The full read
ERP Soft Systems suffered a technical failure of its insider-trading compliance software on 29 June 2026, losing all records in the SDD system with no backup available. For a ₹24 crore company already contending with -39% revenue and -62% profit decline, this is a governance miss, but one confined to compliance. Financial data, operations, and reporting were untouched. The company is rebuilding records from documents and improving backup procedures. The incident does not alter the business outlook, but it shows how even small procedural gaps can surface at firms under pressure. The corrective action is standard; the oversight that led to it is not.
Questions answered
- What exactly happened to ERP Soft's SDD system?
- The software crashed on 29 June 2026, losing all insider trading compliance data. No backup existed.
- Does this affect the company's financial statements or operations?
- No. The SDD is a standalone compliance tool; accounting, operations, and reporting are unaffected.
- How is the company responding?
- It is reconstructing records from available documents and correspondence, and implementing enhanced backup and disaster recovery measures.
- What is the market cap of ERP Soft Systems?
- Approximately ₹24 crore, making it a nano-cap stock with declining revenue (-39%) and profit (-62%).
- Could this lead to regulatory action?
- Potentially, if SEBI finds the lack of backup and data loss as a failure under PIT Regulations. The company has initiated corrective steps.
- Is this material for investors?
- Not financially material, but it could amplify governance concerns for a small firm already under stress.