sebi:Order/KS/VC/2019-20/4099
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Facts / Headnote
Violation found but no penalty imposed; proceedings disposed
Provisions invoked
- s. 15
- s. 19
- s. 15H
Regulations
- Reg. 9(1)
- Reg. 25
Parties
- Shri Swaminathan Muthukrishnan
Holding
The Noticee, a Non-Executive Independent Director and designated person of Bodhtree Consulting Limited, violated Clause 10 of Code of Conduct under Schedule II read with Regulation 9(1) of PIT Regulations by executing 21 contra trades within six months, but no penalty under Section 15HB of the SEBI Act was imposed.
Full text
Page 2 of 10 a longer period. In view of this, to verify whether such trades were done by the said entity in a longer period, SEBI again requested BSE to expand the period of examination from January-2017 to March-2018. BSE carried out the examination and submitted the report date August 30, 2018. In this report BSE reiterated that the Noticee had traded in the scrip of the company in as much as carried out contra trades.
Page 3 of 10 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING: 6. A Show Cause Notice ref. SEBI/HO/EAD-8/KS/VC/18113/2019 dated July 17, 2019 (hereinafter referred to as ‘SCN’) was issued to the Noticee under the provisions of Rule 4(1) of the Adjudication Rules, to show cause as to why an inquiry should not be held against him and why penalty, if any, should not be imposed on him under the provisions of section 15HB of the SEBI Act for alleged violation of the relevant provisions of PIT Regulations.
Page 4 of 10 27-Jul-17 500 0 32,500.00 6500 28-Jul-17 590 38,087.50 7090 28-JuI-17 290 19,778.00 6800 31-Jul-17 7 0 455.70 6807 2-Aug-17 500 0 32,750.00 7307 8-Nov-17 100 0 6,570.00 7407 26-Dec-17 0 200 15,400.00 7207 1-Jan-18 0 207 17,367.30 7000 23-Feb-18 0 100 8,800.00 6900 9-Mar-18 0 100 8,120.00 6800 20-Mar-18 200 0 13,820.00 7000 4-Apr-18 100 0 7,450.00 7100 21-Sep-18 0 300 18,400.00 6800 24-Sep-18 0 1,200 73,045.00 5600 26-Sep-18 0 1,000 60,650.00 4600 28-Sep-18 0 521 28,681.45 4079 3-Oct-18 0 500 27,450.00 3579 9-Oct-18 0 250 12,058.85 3329 10-0ct-18 0 500 25,424.00 2829 17-Oct-18 0 2,829 139,572.20 0 c. In view of Table 1, it is observed that the Noticee had entered into 22 contra trades, 16 on the buy side and 6 on the sell side during the examination period and had earned a profit of Rs. 28,220/- by those trades. Further, BCL, vide Email dated December 01, 2018 (Annexure 2), has informed SEBI that the Noticee has remitted the profits made out of contra trades i.e. Rs.28,220/- to SEBI - Investors Protection and Education Fund A/c. d. In view of this, it is alleged that the Noticee had entered into multiple contra trades within prohibition period i.e. within 6 months of earlier trades. Therefore, it is alleged that the Noticee, by entering contra trades within 6 months, has violated the provisions of Clause 10 of Code of Conduct mentioned at Schedule II read with Regulation 9(1) of PIT Regulations.
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Source: SecMarx — sebi:Order/KS/VC/2019-20/4099. 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.