sebi:EAD-2/DSR/RG/174/2014
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Facts / Headnote
Penalty imposed on the Noticee for violations of PIT Regulations
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 12
- s. 15J
- s. 4A
Regulations
- Reg. 12(1)
- Reg. 13(4)
- Reg. 13(5)
Parties
- Shri Pavan Kumar Sodani
Holding
The Noticee violated Clause 4.2 of the Model Code of Conduct read with Regulation 12(1) of the PIT Regulations by entering into opposite transactions within six months and trading during the window closure period, and violated Regulation 13(4) read with Regulation 13(5) of the PIT Regulations by failing to make required disclosures. A total penalty of Rs. 4,00,000 was imposed (Rs. 2,00,000 under Section 15A(b) and Rs. 2,00,000 under Section 15HB of the SEBI Act).
Full text
Page 2 of 8 was in violation of Clause 4.2 of the Model Code of Conduct specified in Part A of Schedule 1 read with Regulation 12(1) of the SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as PIT Regulations). Further, it was observed that upon the said transactions entered into by the Noticee, his holding in the company exceeded 5 lakh in value which required him to make necessary disclosure as prescribed under Regulation 13(4) read with Regulation 13(5) of the PIT Regulations. However, the same had not been made. SEBI has, therefore, initiated adjudication proceedings under the Act to inquire into and adjudge the alleged violation of the provisions of law by the Noticee.
Page 3 of 8 replied to the said SCN. The Noticee also informed his changed address for future correspondence and requested for an opportunity of hearing in the matter. Accordingly, another opportunity of personal hearing was granted to the Noticee on July 08, 2014. The Noticee attended the said hearing on the scheduled date and reiterated the submissions made in his reply dated June 07,
Page 4 of 8 (d) the public financial institutions as defined in section 4A of the Companies Act,1956; and (e) the professional firms such as auditors, accountancy firms, law firms, analysts, consultants, etc., assisting or advising listed companies, shall frame a code of internal procedures and conduct as near thereto the Model Code specified in Schedule I of these Regulations without diluting it in any manner and ensure compliance of the same.
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Source: SecMarx — sebi:EAD-2/DSR/RG/174/2014. 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.