sebi:EAD-5/SVKM/AO/01-06/2017-18

SEBI · SEBI · 2016-10-08 · S. V. Krishnamohan, Chief General Manager & Adjudicating Officer

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Facts / Headnote

Penalty of Rs.5,00,000 on Noticee No.2 for violation of Clauses 3.3.1 and 4.2 and joint and several penalty of Rs.3,00,000 on Noticees No.2 to 6 for violation of Clause 1.2; no penalty on Noticee No.1 as adjudication proceedings against company under liquidation cannot continue without leave of Court.

Provisions invoked

• s. 11B
• s. 15
• s. 15H
• s. 15I
• s. 279
• s. 446

Regulations

• Reg. 4
• Reg. 12(1)
• Reg. 12
• Reg. 12(3)

Holding

Noticee No.2 violated Clauses 3.3.1 and 4.2 and Noticees No.2 to 6 violated Clause 1.2 of the Model Code read with Regulation 12(1) & (3) of SEBI (PIT) Regulations, 1992 and are liable to monetary penalty under Section 15HB of the SEBI Act, 1992, while proceedings against Noticee No.1 under liquidation cannot continue without leave of the Court under Section 446 of the Companies Act, 1956.

Full text

Adjudication Order in the matter of Aanjaneya Lifecare Limited (now known as Dr. Datsons Labs Ltd.) Page 2 of 17 Dr. Datsons Labs Ltd.) (hereinafter referred to as “The Company/Noticee 1”). During the Investigation, it was observed that Shri Kannan Vishwanath, Chairman & Managing Director of Aanjaneya Lifecare Limited allegedly traded in the shares of the Company without obtaining pre-clearance from the Company and also entered into opposite transactions within 6 months of prior transactions, in violation of the provisions of Clause 3.3.1 & 4.2 of Model Code of Conduct for prevention of Insider Trading contained in Part A of Schedule I read with Regulation 12(1) & (3) of the SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as “SEBI (PIT) Regulations”). Further, Aanjaneya Lifecare Limited (now known as Dr. Datsons Labs Limited), its Directors namely Shri Kannan Vishwanath, Shri Shashikant Babanrao Shinde, Shri Prabhat Kumar Goyal, Shri Paul Chakkapah Naythatil and its Compliance Officer Shri Yogesh Patel (hereinafter referred to individually as “Noticee no. 1 to 6 respectively” and collectively as “Noticees”) allegedly failed to implement the Model Code of Conduct for prevention of insider trading with regard to the aforesaid trades of noticee no. 2, and violated Clause 1.2 of Model Code of Conduct for prevention of insider trading contained in Part A of Schedule I read with Regulation 12 (1) & (3) of SEBI (PIT) Regulations, 1992.

Adjudication Order in the matter of Aanjaneya Lifecare Limited (now known as Dr. Datsons Labs Ltd.) Page 3 of 17 Code of Conduct contained in Part A of Schedule I read with Regulation 12 (1) & (3) of SEBI (PIT) Regulations, 1992, by all the noticees and Clause 3.3.1 & 4.2 of Model Code of Conduct contained in Part A of Schedule I read with Regulation 12 (1) & (3) of SEBI (PIT) Regulations, 1992, by Shri Kannan Vishwanath, the Noticee No. 2 herein.

Adjudication Order in the matter of Aanjaneya Lifecare Limited (now known as Dr. Datsons Labs Ltd.) Page 4 of 17 that unfortunately, I do not have the copy of the acknowledgement from the Company. I maintained the files pertaining to the Company at the registered office of the Company which suffered heavy flooding during the years 2013.”

Source: SecMarx — sebi:EAD-5/SVKM/AO/01-06/2017-18. 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.