sebi:IVD-ID10/KNRCL/KNR/AO/DRK/AS/EAD3/300-09/66-2011
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Facts / Headnote
Penalty imposed; violations of Regulation 12(3) and clauses 1.2, 3.2, 3.3 of Schedule I established; violation of clause 2.1 of Schedule II not established
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 12
- s. 4A
Regulations
- Reg. 12(1)
- Reg. 12
- Reg. 14
- Reg. 12(2)
- Reg. 12(3)
Parties
- Shri. K. Jalandhar Reddy
- Shri J.V. Panindra Reddy
- Shri. M. Rajesh Reddy
- Shri J.S.R. Chandramouli
- Shri. L.B. Reddy
- Shri D. Ramaiah
Holding
The noticees, being Directors of KNR Constructions Ltd., were held liable for violating Regulation 12(3) of the SEBI (Prohibition of Insider Trading) Regulations, 1992 and clauses 1.2, 3.2 and 3.3 of Schedule I read with Regulation 12(1), while the violation of clause 2.1 of Schedule II under Regulation 12(2) was not established. A consolidated penalty of Rs. 4,00,000/- was imposed on all noticees jointly and severally.
Full text
Page 2 of 18 APPOINTMENT OF ADJUDICATING OFFICER 3. I was appointed as the Adjudicating Officer and communicated vide proceedings of Whole Time Member appointing Adjudicating Officer dated April 13, 2011 under Section 15 I of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’) read with Rule 3 of Securities and Exchange Board of India (Procedure for Holding Inquiry 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 the Directors of KNR namely Shri. K. Jalandhar Reddy, Shri J.V. Panindra Reddy, Shri. M. Rajesh Reddy, Shri J.S.R. Chandramouli, Shri. L.B. Reddy and Shri D. Ramaiah (hereinafter referred to as the noticees) during the Investigation period.
Page 3 of 18 Reddy 3) Shri. M. Rajesh Reddy A&E/KNR/DRK/AS/ 20313/2011 Do Do 4) Shri J.S.R. Chandramouli A&E/KNR/DRK/AS/ 20307/2011 Do Do 5) Shri. L.B. Reddy A&E/KNR/DRK/AS/ 20311/2011 Do Do 6) Shri D. Ramaiah A&E/KNR/DRK/AS/ 20302/2011 Do Do
Page 4 of 18 8. As per clause 3.2-4 of Schedule I under Regulations 12 (1) of SEBI Insider Regulations, it is mandatory to close the trading window from the time when information is un-published to the time after 24 hours when such information is made public. However it was alleged that the company had not closed the trading window when information is un-published to the time after 24 hours when such information is made public.
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Source: SecMarx — sebi:IVD-ID10/KNRCL/KNR/AO/DRK/AS/EAD3/300-09/66-2011. 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.