FCA Fines Former Bidstack CFO & Associate for Insider Dealing

The Financial Conduct Authority (FCA) has fined two individuals a combined £108,731 for insider dealing linked to shares in Bidstack Group Plc, reinforcing its commitment to tackling market abuse and protecting market integrity.

Dipesh Kerai has been fined £52,731 and Bhavesh Hirani £56,000 following enforcement action relating to unlawful trading in December 2021. At the time, Mr Hirani was interim Chief Financial Officer (CFO) of Bidstack, an advertising technology company specialising in in-game advertising. In that role, he had access to inside information concerning a significant forthcoming commercial agreement between Bidstack and a major video game publisher.

Before the information was made public, Mr Hirani unlawfully disclosed the confidential details to Mr Kerai. He then opened a trading account in Mr Kerai’s name and, acting together, purchased approximately 1.3 million Bidstack shares while in possession of inside information. Once the deal was announced, Bidstack’s share price increased by more than 125 per cent.

Mr Kerai realised profits exceeding £9,000. As part of the enforcement outcome, the FCA has required him to disgorge £9,260.74 plus interest. His total financial penalty comprises disgorgement and a £42,000 fine, reduced by 30 per cent to reflect early settlement. Mr Hirani’s £56,000 penalty also reflects a 30 per cent settlement discount applied to an assessed penalty of £80,000.

The conduct breached Article 14 of the UK Market Abuse Regulation UK MAR, which prohibits insider dealing and the unlawful disclosure of inside information.

Notably, the suspicious trading activity first came to the FCA’s attention through Suspicious Transaction and Order Reports (STORs) submitted by a regulated firm. This underlines the critical role that firms play in detecting and reporting potential market abuse under their regulatory obligations.

Steve Smart, Executive Director of Enforcement and Market Oversight at the FCA, emphasised the importance of industry cooperation in identifying misconduct, highlighting that the regulator will continue to pursue those who misuse inside information and undermine trust in UK markets.

Bidstack Group Plc was admitted to trading on AIM until 23 April 2024. The case aligns with the FCA’s five-year strategy, which places tackling financial crime and strengthening market integrity at its core.

This enforcement action sends a clear signal that senior executives and market participants who exploit privileged information for personal gain will face financial penalties and public sanction, particularly where surveillance mechanisms such as STOR reporting enable swift regulatory intervention.

Read the press release here.