SEBI passes insider trading order against Raj Kumar Agarwal over RHI Magnesita trades
Former Hi-Tech Chemicals promoter accused of trading RHI shares while in possession of UPSI on RHI's proposed acquisition of Dalmia OCL.
What changed
- SEBI adjudicating officer passed an order against Raj Kumar Agarwal for alleged insider trading in RHI Magnesita.
- The UPSI related to RHI's proposed share-swap acquisition of Dalmia OCL, disclosed November 19, 2022.
- A show-cause notice was issued April 10, 2026 seeking penalty under Section 15G(i).
The read
SEBI's order against Raj Kumar Agarwal shows the regulator widening its insider-trading net to catch individuals connected through business transfer agreements. Agarwal, a former promoter of Hi-Tech Chemicals, was in the loop on RHI's acquisition of Hi-Tech's refractory business—and allegedly used that access to trade RHI shares while also knowing of RHI's planned share-swap takeover of Dalmia OCL. The investigation period runs from July 08, 2022 to December 19, 2022, covering the time between the two deal disclosures. No penalty amount is specified yet, but the message is clear: anyone with a seat at the M&A table is on the hook for what they do with that information.
Primary source: official circular (PDF)