Firstsource CFO, Dinesh Jain, Receives Cautionary Notice Over Insider Trading Code Breach

Firstsource Solutions has disclosed that its Chief Financial Officer (CFO), Dinesh Jain, inadvertently violated the company’s insider trading code by trading shares during the trading window closure period and executing a contra trade.

On June 29, Jain sold 7,211 shares of the company at Rs 242 per share and repurchased the same number of shares later that day at Rs 238.68 per share. The company stated that the breach was procedural and unintentional. Jain informed the Compliance Officer of the transaction before making the required report.

Following the disclosure, Firstsource issued a cautionary notice to Jain and prohibited him from trading the company’s shares for the next six months. The company did not impose a monetary penalty, citing that it was his first violation, the transaction size was not material, and the breach was voluntarily reported. The matter will also be placed before the audit committee for review.