sebi:Order/KS/AS/2021-22/11321

SEBI · SEBI · 2020-12-31 · K Saravanan, 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

Penalty imposed of Rs 1,00,000/-

Provisions invoked

• s. 15
• s. 15H
• s. 15J
• s. 12
• s. 28A
• s. 4A

Regulations

• Reg. 12(1)
• Reg. 12(2)

Parties

• M Narasimha Rao

Holding

The Noticee, M Narasimha Rao, a Director of Trinethra Infra Ventures Ltd, violated Clause 4.2.2 and 4.3.1 of the Code of Conduct for Prevention of Insider Trading adopted by Trinethra read with Clause 3.2.2 and 3.3.1 of the Model Code of Conduct specified in Part A of Schedule I to Regulation 12(1) and 12(2) of the PIT Regulations, 1992, read with Regulation 12(2) of the PIT Regulations, 2015, by trading during window closure periods and without obtaining pre-clearance, and a penalty of Rs 1,00,000/- was imposed under Section 15HB of the SEBI Act, 1992.

Full text

Adjudication order in the matter of Trinethra Infra Ventures Ltd Page 2 of 11 Act, 1992 (hereinafter referred to as ‘SEBI Act, 1992’) and Rule 3 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules, 1995’) to inquire into and adjudge under Section 15HB of the SEBI Act, 1992, the alleged violation of provisions of Clause 4.2.2 and 4.3.1 of Code of Conduct for Prevention of Insider Trading adopted by Trinethra read with Clause 3.2.2 and 3.3.1 respectively, of Model Code of Conduct for Prevention of Insider Trading for Listed Companies specified in Part A of Schedule I to Regulation 12(1) and 12(2) of the PIT Regulations, 1992, read with Regulation 12(2) of the PIT Regulations, 2015. SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING

Adjudication order in the matter of Trinethra Infra Ventures Ltd Page 3 of 11 21/01/2010 to 01/02/2010 27/01/2010 Buy: 11 Sell: 27 Net: 5000 -5229 -229 29/01/2010 Buy: 9 4000 Relevant extract of the trade log containing details of the above trades is attached as Annexure

Adjudication order in the matter of Trinethra Infra Ventures Ltd Page 4 of 11 SAT in the matter of Sanjay Kumar Tayal & Others vs SEBI (Appeal No. 68 of 2013 decided on February 11, 2014), wherein it was, inter alia, observed, “........... appellants have neither filed reply to show cause notices issued to them nor availed opportunity of personal hearing offered to them in the adjudication proceedings and, therefore, appellants are presumed to have admitted charges leveled against them in the show cause notices...”. Accordingly, in absence of response of the Noticee to the SCN, it may be presumed and inferred that the allegations/charges have been admitted by the Noticee.

Source: SecMarx — sebi:Order/KS/AS/2021-22/11321. 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.