sebi:EAD-5/SVKM/SPV/AO/13/2015

SEBI · SEBI · 2014-06-24 · S V Krishnamohan, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Violation established; penalty of Rs. 10,00,000 imposed under Section 15HB of the SEBI Act

Provisions invoked

• s. 15
• s. 15H
• s. 15G
• s. 15J

Regulations

• Reg. 13
• Reg. 12(1)
• Reg. 2(h)

Parties

• A R Sankaranarayanan

Holding

The Noticee, a Director of Manappuram Finance Limited, violated Clause 3.3-1 of the Code of Conduct under Part A of Schedule I read with Regulation 12(1) of the PIT Regulations by failing to obtain pre-clearance for his wife's sale of 1363165 shares, and was held liable to a monetary penalty of Rs. 10,00,000 under Section 15HB of the SEBI Act.

Full text

Adjudication Order in the matter of Manappuram Finance Limited – ARSankaranarayanan Page 2 of 11 12(1) of SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as PIT Regulations). It is therefore alleged that the Noticee has violated the aforesaid provisions of PIT Regulations and is liable for monetary penalty under 15HB of the SEBI Act,1992 (hereinafter referred to as SEBI Act).

Adjudication Order in the matter of Manappuram Finance Limited – ARSankaranarayanan Page 3 of 11 also filed. Summary of submissions made on behalf of the Noticee are as under:

Adjudication Order in the matter of Manappuram Finance Limited – ARSankaranarayanan Page 4 of 11  that none of the factors under section 15J of SEBI Act are attracted to impose penalty in the present case.  that the IT Returns and Bank Statements were filed to suggest that MrsSarada is an independent assesse.  Bombay High Court Judgment in the matter of Cabot International Limited is relied to suggest that mere technical breach does not warrant any penalty.  Lastly, it was submitted that the Noticee is a 90 year old person who has an unblemished track record and no penalty should be visited against him for the reasons stated above.

Source: SecMarx — sebi:EAD-5/SVKM/SPV/AO/13/2015. 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.