sebi:EAD/PM-AA/AO/34/2017-18
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Facts / Headnote
Show Cause Notice disposed of without imposition of any penalty
Provisions invoked
- s. 15I
- s. 15G
- s. 2(77)
Regulations
- Reg. 12
- Reg. 3(i)
- Reg. 2(h)
- Reg. 12(2)
Parties
- Bharat Kanaiyalal Sheth
Holding
The alleged violation of Regulation 3(i) of the PIT Regulations, 1992 by the Noticee, Shri Bharat Kanaiyalal Sheth, was not established because no UPSI existed at the time of the sale of 6,000 shares of FTIL between November 09, 2012 and February 06, 2013. The SCN was disposed of without imposition of any penalty.
Full text
Adjudication Order in respect of Bharat Kanaiyalal Sheth in the matter of FTIL Page 2 of 8 selling by its Members, pairing of contracts and settlement of contracts beyond 11 days, impending payment defaults by the members of NSEL and loss of reputation of Promoters and Management of FTIL. It was observed that any news impacting business of NSEL will automatically impact share price of its holding company (i.e. FTIL) and any news impacting credentials of Promoters and Management of FTIL, NSEL and MCX will also impact the share price of FTIL, therefore, suspension of trading by NSEL was a negative news. As per the Investigating Authority, the UPSI came into existence on April 27, 2012, upon the issuance of the SCN to NSEL, by the DCA and it ceased to exist when NSEL suspended trading in all contracts (except e-series contracts) and deferred settlement of all pending contracts on July 31, 2013.
Adjudication Order in respect of Bharat Kanaiyalal Sheth in the matter of FTIL Page 3 of 8 (Prohibition of Insider Trading) Regulations, 2015 (hereinafter referred to as “PIT Regulations, 2015”). APPOINTMENT OF ADJUDICATING OFFICER
Adjudication Order in respect of Bharat Kanaiyalal Sheth in the matter of FTIL Page 4 of 8 PIT Regulations, 2015 alleging insider trading in shares of 63 Moons Technologies Ltd. The Learned WTM has completed the personal hearing and has reserved orders. Since the facts relating to both proceedings are same, we request you to keep on hold the proceedings pursuant to the SCN to avoid needless multiplicity of proceedings.
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Source: SecMarx — sebi:EAD/PM-AA/AO/34/2017-18. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.