sebi:EAD/PM-AA/AO/37/2017-18
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Facts / Headnote
Show Cause Notice disposed of without imposition of any penalty on Allegation No. 1; Allegation No. 2 to be dealt with separately
Provisions invoked
- s. 15A
- s. 15I
- s. 15G
Regulations
- Reg. 3(i)
- Reg. 13(4)
- Reg. 13(5)
- Reg. 12(2)
Parties
- V. Arvindkumar Iyengar
Holding
The allegation that the Noticee violated Regulation 3(i) of PIT Regulations, 1992 by selling 2,100 shares of FTIL while in possession of UPSI was not established, because the UPSI ceased to exist on October 3, 2012 when the Economic Times article was published, and the Noticee's sales occurred between November 5, 2012 and November 9, 2012. The SCN was disposed of without imposition of any penalty on this allegation.
Full text
Adjudication Order in respect of V. Arvindkumar Iyengar in the matter of FTIL Page 2 of 10 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 V. Arvindkumar Iyengar in the matter of FTIL Page 3 of 10 November 09, 2012 when in possession of UPSI and thereby violated provisions of Regulation 3(i) of PIT Regulations, 1992 read with Regulation 12(2) of SEBI (Prohibition of Insider Trading) Regulations, 2015 (hereinafter referred to as “PIT Regulations, 2015”).
Adjudication Order in respect of V. Arvindkumar Iyengar in the matter of FTIL Page 4 of 10 the SEBI Act the alleged violations of provisions of Regulation 3(i) and Regulation 13(4) read with Regulation 13(5) of PIT Regulations, 1992 of read with Regulation 12(2) of PIT Regulations, 2015 by the Noticee. SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING
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Source: SecMarx — sebi:EAD/PM-AA/AO/37/2017-18. 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.