sebi:IVD-ID10/KNRCL/KNR/AO/DRK/AS/EAD3/299-09/65-2011
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Facts / Headnote
Penalty imposed on noticee for violations of SEBI (Prohibition of Insider Trading) Regulations, 1992
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 12
- s. 4A
Regulations
- Reg. 12(1)
- Reg. 12
- Reg. 12(2)
- Reg. 12(3)
Parties
- KNR Constructions Ltd.
Holding
The noticee KNR Constructions Ltd. violated Regulation 12(3) and clauses 1.2, 3.2 and 3.3 of Schedule I read with Regulation 12(1) of the SEBI (Prohibition of Insider Trading) Regulations, 1992, but the violation of clause 2.1 of Schedule II under Regulation 12(2) was not established. A penalty of Rs. 4,00,000 was imposed on the noticee.
Full text
Page 2 of 17 and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge under Section 15HB of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as SEBI Act) the violations of the provisions of Regulation 12(3) of SEBI Insider Trading Regulations and clauses 1.2, 3.2 and 3.3 of Schedule I read with Regulation 12(1) and clause 2.1 of Schedule II (Code of corporate disclosure practices for Prevention of Insider Trading) under Regulation 12(2) of SEBI Insider Trading Regulations alleged to have been committed by KNR during the Investigation period.
Page 3 of 17 7. It was alleged based on IR that the noticee had knowledge that it was L1 bidder on December 26, 2008. It was alleged that on February 26, 2009 at 1.07 pm the noticee had received letter of acceptance of project order. However the same was given to Stock Exchanges only at 3.56 pm i.e after a gap of around three hours. In this regard it was alleged based on IR that this information of receipt of letter of acceptance remained as unpublished price sensitive information (“UPSI”) from 1.07 p.m. to 3.56 pm on February 26, 2009 with the company KNR in violation of clause 2.1 of Schedule II (Code of corporate disclosure practices) which requires a listed company to disseminate information on a prompt and immediate basis.
Page 4 of 17 12. In view of the above, it was alleged that the above actions amounted to violation of the provisions of Regulation 12(3) of SEBI Insider Trading Regulations and clauses 1.2, 3.2 and 3.3 of Schedule I read with Regulation 12(1) and clause 2.1 of Schedule II under Regulation 12(2) of SEBI Insider Trading Regulations.
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Source: SecMarx — sebi:IVD-ID10/KNRCL/KNR/AO/DRK/AS/EAD3/299-09/65-2011. 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.