Tesco has defended a senior executive who sold more than £200,000 worth of shares ahead of a profits warning that took £5bn off the company's value.
The supermarket giant said it was confident that its UK chief operating officer had not possessed any price-sensitive information at the time the sale was approved.
It added that Noel "Bob" Robbins sold less than 5% of his shareholding.
Tesco reported its worst Christmas sales results in decades on Thursday.
Mr Robbins sold 50,000 shares at 404.5p on 4 January, a week before the company revealed its UK Christmas sales results, which triggered a 16% drop in its share price.
The sale, which was approved by chief executive Philip Clarke, took place three days ahead of a "close period" preventing executives from selling shares before a key trading update, say reports.
In a statement, a Tesco spokesman said: "Bob Robbins sold less than 5% of his substantial shareholding in Tesco for necessary family expenditure.
"The sale, which was not made within a close period, was approved in the usual way.
"We are confident that Bob was not in possession of any price-sensitive information at the time that the sale was approved."
Tesco did not complete its Christmas trading period until after the sale was made, the statement said.
"In fact, the significant movement in the share price on Thursday was, we believe, primarily due to the announcement on profit guidance and UK investment plans for 2012/13.
"Bob was not party to discussions around the profit guidance or the investment plans at the time he made his sale."
The company said that as a member of senior management, Mr Robbins is required to hold shares with a value equivalent to at least his basic salary.
Following this sale, he will continue to hold substantially more than this minimum requirement, it added.