sebi:Order/MC/VS/2019-20/6226
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Facts / Headnote
Insider trading charge under Regulation 3(i) and pre-clearance charge under Clause 3.3.1 held not established; opposite-transaction charge under Clause 4.2 held established with penalty of Rs. 2,00,000 under Section 15HB.
Provisions invoked
- s. 15
- s. 15H
- s. 15G
- s. 15J
- s. 307
- s. 23J
- s. 340
Regulations
- Reg. 12(1)
- Reg. 3
- Reg. 2
- Reg. 2(e)
- Reg. 12
- Reg. 16
Parties
- C. Rajesh Nair
Holding
The Noticee did not violate Regulation 3(i) or Clause 3.3.1 of the Model Code, but violated Clause 4.2 of the Model Code read with Regulation 12(1) by selling SHL shares within six months of buying 1,00,000 shares on February 5, 2010, and is liable to a penalty of Rs. 2,00,000 under Section 15HB of the SEBI Act.
Full text
Page 2 of 29 Adjudication Order in respect of C. Rajesh Nair in the matter of Sigrun Holdings Ltd. APPOINTMENT OF ADJUDICATING OFFICER
Page 3 of 29 Adjudication Order in respect of C. Rajesh Nair in the matter of Sigrun Holdings Ltd. SHOW CAUSE NOTICE, REPLY AND HEARING
Page 4 of 29 Adjudication Order in respect of C. Rajesh Nair in the matter of Sigrun Holdings Ltd. (f) From the price volume data of SHL for the period under investigation, it was observed that the scrip opened at Rs 19.3 on May 24, 2010, touched a high of Rs 20.45 intraday and closed at Rs 19.3. Post declaration of quarterly results on May 29, 2010, the scrip opened at Rs 15.8 on May 31, 2010 and closed at Rs 15.1. It was observed that the price of the scrip continued to move downwards till June 04, 2010, when the closing price was Rs 12.4. (g) The information relating to financial results of the company for the quarter ended March 2010 was the Unpublished Price Sensitive Information (“UPSI”). (h) The financial results of SHL for the year ended March 2010 were available with then MD of SHL by last week of April 2010, as admitted by the Noticee in his communication to SEBI dated March 13, 2013. Therefore the UPSI period was 'last week of April 2010 upto May 29, 2010, i.e. until the announcement of financial results at 18:51 hrs on May 29, 2010.' (i) In terms of Regulation 2(e) of SEBI (PIT) Regulations, 1992, the Noticee was an 'insider' within the meaning of regulation 2(e) of the PIT Regulations, by virtue of occupying the position of MD of the company and as such he was reasonably expected to have access to the unpublished price sensitive information relating to the quarterly financial results of SHL. Further, as noted earlier, the Noticee has also himself admitted to bein
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Source: SecMarx — sebi:Order/MC/VS/2019-20/6226. 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.