sebi:Order/KS/VC/2019-20/4152
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Facts / Headnote
Violation found but no penalty imposed; proceedings disposed of
Provisions invoked
- s. 15
- s. 19
- s. 15H
Regulations
- Reg. 9(1)
- Reg. 23
Parties
- Kadiresan M Muthiah
Holding
The Noticee violated Clause 10 of Code of Conduct mentioned at Schedule II read with Regulation 9(1) of PIT Regulations by executing 36 contra trades within six months, but no penalty under Section 15HB of the SEBI Act was imposed.
Full text
Page 2 of 10 Regulations. During the course of examination, it was observed by SEBI that Mr. Kadiresan M Muthiah (hereinafter referred to as ‘Noticee’) had entered into multiple contra trades within prohibition period i.e. within 6 months of earlier trades.
Page 3 of 10 of Conduct prescribed under PIT Regulations. It is observed that the Noticee was Non-Executive - Independent Director during the examination period. b. During the course of Examination, it was observed that the Noticee had entered into the following trades in the scrip of BCL: Table 1 Date of Acquisition/ Sale No. of shares acquired No. of Shares Sold Sale/ Acquisition Value Balance No. of shares held 29-Mar-2017 500
Page 4 of 10 10-Jan-2018 100 8,500.00 4,600 15-Jan-2018 400 42,000.00 4,200 09-Feb-2018 300 31,000.00 3,900 14-Feb-2018 200 21,000.00 3,700 c. In view of Table 1, it is observed that the Noticee had entered into 36 contra trades, 16 on the buy side and 20 on the sell side during the examination period and had earned a profit of Rs. 73,413/- by those trades. The Noticee has not denied entering in the above said transactions. Further, the Noticee, vide Email dated March 12, 2019, has informed SEBI that he has remitted the profits made out of contra trades i.e. Rs.73,413/- 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/2019-20/4152. 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.