KPIT - CASE (connected, autonomous, shared, electric) - Focused Automotive Play

[Marathondreams]

Today I received reply from company general counsel on SCORES as below
Quote
Date June 27, 2025 Dear Shareholder, Subject - SEBI Complaint Redress System SCORES Online Complaint Registration Ref - SEBIEMH25PUNE0249381 This is with respect to your recent communication concerning a share transaction by a designated person and the Company’s mid-quarter update submitted to stock exchanges on June 23, 2025. We wish to clarify that the transaction in question was undertaken by Designated person following due process aligned with the SEBI Prohibition of Insider Trading Regulations, 2015 and non-possession of any Unpublished Price Sensitive Information UPSI. Accordingly, the transaction was duly reported to the stock exchanges. Please note that, the Mid Quarter Update – June 2025 contains Update on Caresoft acquisition that was already in the public domain and will not be considered as UPSI. The Board’s approval of the acquisition of Caresoft’s Engineering Business is disclosed to exchange on May 6, 2025. Further said announcement also contains Other Updates outlining the company’s business uncertainty in business environment, rising geopolitical concerns and ambiguity around the overall tariff scenario and will not be considered as UPSI. Additionally, the Company has given the Employee Stock Options ESOP to employees for their contribution to the company’s growth after achieving performance criteria which forms part of their compensation. These ESOP Schemes are approved by shareholders of the Company. Employees Designated Persons within the framework of applicable statutory laws, exercise the options, trade in shares as per their needs requirement of funds, when not in possession of UPSI. We reaffirm our commitment to upholding the highest standards of corporate governance and regulatory compliance. The Company ensures the timely disclosure of relevant information in the best interests of stakeholders. For KPIT Technologies Limited Ashish Malhotra General Counsel Company Secretary
Unquote

As you can see, company is arguing that their mid quarter update can not be treated as UnPublished Sensitive Information (UPSI) under SEBIs Insider trading regulations. I have replied back and sent it for first level review by SEBI. Lets hope SEBI will look into the matter and reprimand/penalise company so that minority investors are not subjected to this unfair treatment

[Deven]

Thanks @Marathondreams for taking pain to write and informing us. Found useful. Do let us know if you get updates from sebi.

KPIT is my core PF and tracking it since April 2020. In KPIT there are 3 main promoter cum management are Patil, Pandit and Tikekar. Mr Bhagwat seems silent promoter (who sold part recently). Small selling in KPIT happened since long, this mainly involved esop. I will be worried if 3 main promoter or their family member sells.

Regarding mid quater updates, primafacia, seems company is right, it doesn’t seems like UPSI.

Just my biased thoughts. Disc: Invested as mentioned.

[Marathondreams]

Going by the letter of the law, mid quarter update strictly may not be a UPSI. But from what I know about the company (for last 20 +years) and its promoters(Pandit and Patil) , they are simple, humble and highly ethical people. Hence I expected company to follow spirit of the law, which they did not. Going by the share sale data, it leaves no doubt in my mind that all of the designated persons have sold their shares due to upcoming announcement ( they did not sell when price recently crossed 1400), which further precipitated share price drop. (or at least curtailed possibility of share price bounce back as disclosures started coming in from 25th onwards). Now my case is allocated to person in BSE so lets see what happens. I am hoping, with this investor pushback , company will circulate internal memo to its designated persons to avoid such actions in the future (even if they may not agree openly)