Orient Paper & Industries Limited — Important, 31-01-2025: Updates

Orient Paper and Industries Limited reported a violation of the Code of Conduct related to insider trading regulations. The Managing Director and CEO, Mr. Ashwin J. Laddha, conducted multiple share sales on December 20, 2024, totaling Rs. 8.16 lakh for 21,000 shares, among other transactions. Despite the sales exceeding Rs. 10 lakh in a calendar quarter, the individual did not obtain prior approval from the Compliance Officer, constituting a breach of regulations.

In response, the company issued a Show Cause Notice and has since imposed a penalty of Rs. 3.82 lakh, which reflects the profit made from the unauthorized trades. This amount will be remitted to SEBI for the Investor Protection and Education Fund. The Audit Committee deemed the explanation provided by Mr. Laddha unsatisfactory, leading to decisive action. This situation is being monitored closely, given that it marks the first instance of such a violation for the company.