The Securities and Exchange Board of India (SEBI) on Tuesday (October 13) imposed a penalty of ₹10 lakh on Supriya Kothari for failing to cooperate with its investigation into suspected insider trading in Wipro Ltd shares, according to an adjudication order.
The regulator found that Kothari failed to provide information and documents sought during the investigation despite repeated communications, summons and reminders. The proceedings concerned alleged violations of Sections 11C(3), 11C(6)(a) and 11C(6)(b) of the SEBI Act, 1992.
The adjudicating officer said the investigation was initiated to ascertain the reasoning behind Kothari’s trades in Wipro shares. The order concerns her failure to cooperate with the investigation and does not impose a penalty for an established insider trading violation.
SEBI’s summons and reminders went unanswered
According to the order, SEBI first sought information about Kothari and her trades in Wipro shares on September 5, 2025. It subsequently issued three summons on September 16, September 23 and September 30, 2025, seeking the required information and documents.
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The summons were served through email and speed post. However, Kothari did not provide the information sought by the regulator. SEBI also approached her broker, ICICI Securities Ltd, in October 2025 to facilitate communication. On October 29, 2025, Kothari informed the broker that she was outside India and would provide the required details and documents within a week.
The regulator subsequently sent reminders on December 10, December 16 and December 24, 2025. The information sought remained outstanding. The adjudicating officer said, “The noticee was deliberately not responding to the summons and was trying to dodge the proceedings”, referring to Kothari’s conduct during the investigation.
Kothari did not respond to show-cause notice
SEBI subsequently issued a show-cause notice (SCN) to Kothari. An authorised representative sought additional time to submit a reply on April 6, 2026, and undertook to provide an authorisation letter. The regulator granted time until April 14, 2026. However, the required reply and authorisation letter were not submitted.
A personal hearing was offered through a notice dated April 27, 2026, with a further deadline of April 29 to submit a reply and the authorisation letter. Kothari neither filed a response nor attended the hearing, according to the order. SEBI proceeded ex parte, taking into account the material available on record.
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The adjudicating officer said, “The Noticee failed to provide details/documents sought by SEBI during the course of investigation”, concluding that the relevant provisions of the SEBI Act had been violated.
SEBI cites regulatory impact of non-cooperation
The order also referred to observations by the Securities Appellate Tribunal (SAT) in an earlier matter involving Vikas Gourihar Narnavar and SEBI. The tribunal had observed: “It is a serious irregularity which hinders the investigations.”
SEBI said the failure to provide the required information constrained its investigating authority, which had to complete the investigation without the complete information sought from Kothari.
In determining the penalty, the adjudicating officer considered the factors under Section 15J of the SEBI Act, including disproportionate gains or unfair advantage, losses caused to investors and the repetitive nature of the default.
The order said the material on record did not quantify any disproportionate gain or unfair advantage made by Kothari or any loss suffered by investors. It also stated that she had not been penalised by SEBI previously.
Penalty payable within 45 days
SEBI imposed the ₹10 lakh penalty under Section 15A(a) of the SEBI Act for the established violations. Kothari has been directed to pay the amount within 45 days of receipt of the order through the online payment facility available on SEBI’s website.
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