UK FCA Penalises Ex-Bidstack Executive Over Insider Trading Scheme
What Did the FCA Find?
The UK Financial Conduct Authority has fined two individuals a combined £108,731 for insider dealing linked to trading in shares of Bidstack Group Plc, an AIM-listed advertising technology company that was delisted in 2024.
According to the regulator, Bhavesh Hirani, who served as Bidstack’s interim chief financial officer in late 2021, unlawfully disclosed inside information relating to a major commercial agreement and traded shares ahead of a public announcement. Dipesh Kerai, who received the information and assisted in the trading activity, was also penalised.
The FCA said Hirani had access to confidential details about an upcoming agreement between Bidstack and a large video game publisher. Given Bidstack’s size and reliance on a small number of commercial relationships, the deal was treated as price-sensitive information that had not yet been made public.
Investor Takeaway
How the Trading Scheme Worked
Before the agreement was announced to the market, Hirani passed the confidential information to Kerai. The FCA found that Hirani then account in Kerai’s name and, with Kerai’s cooperation, bought roughly 1.3 million Bidstack shares while in possession of inside information.
When Bidstack disclosed the deal publicly, the company’s share price jumped by more than 125%. The trades generated a profit of just over £9,000 for Kerai. The FCA ordered that amount to be repaid in full, along with interest.
Kerai was fined £52,731 in total, including £9,260.74 in disgorgement and a £42,000 financial penalty that reflected a 30% reduction for ahead settlement. Hirani received a £56,000 fine, reduced from an initial £80,000 assessment later than the identical settlement discount was applied.
Both individuals were found to have breached Article 14 of the UK , which bans insider dealing and the unlawful disclosure of inside information.
Why the Case Reached the Regulator
The said the investigation began later than a regulated firm submitted Suspicious Transaction and Order Reports, known as STORs. These are mandatory when firms identify trading that could involve market manipulation or insider dealing.
STORs play a central role in how the regulator detects abuse, particularly in markets where liquidity is thin and price moves can be sharp. AIM-listed shares often fall into that category, as relatively small trades can have an outsized effect on prices.
Steve Smart, executive director of enforcement and market oversight at the FCA, said the individuals had misused information not available to other investors and attempted to hide their activity by trading through a third-party account.
Investor Takeaway
Why AIM Stocks Attract Enforcement Attention
Bidstack specialised in placing advertising inside video games, an area that drew investor interest as gaming engagement rose during and later than the pandemic. In late 2021, the company was viewking partnerships that could support revenue growth and improve its standing with publishers and advertisers.
For companies of Bidstack’s size, individual commercial agreements can carry heavy weight for valuation. That sensitivity makes advance knowledge of deal announcements especially difficultyatic from a market-abuse perspective.
The FCA did not take action against Bidstack itself. The case focused on personal misconduct, in line with the regulator’s recent approach of targeting individuals rather than firms that may already be under financial strain.
Bidstack remained listed on AIM until April 23, 2024, when it was delisted. The FCA has not connected the insider dealing to the company’s later exit from the market, but the episode now sits within its regulatory record.
What the Enforcement Outcome Tells the Market
Although the profits involved were small compared with larger insider-dealing cases, the FCA has repeatedly said that the size of the gain is not the deciding factor. Any misuse of inside information is viewed as damaging to market fairness.
The case also highlights the long timelines involved in market-abuse investigations. The trading occurred in December 2021, but final notices were issued in February 2026, reflecting the forensic work required to reconstruct trading behaviour and information flows.
Under its current five-year strategy, the FCA has made financial crime and market abuse a priority, with a focus on ahead detection, cooperation with firms, and action against individuals who trade on confidential information.
The regulator said it will continue working with market participants to and pursue enforcement regardless of company size or profit levels, reinforcing the message that even modest insider dealing can lead to penalties years later.
