sebi:Order/PM/AN/2021-22/12548

SEBI · SEBI · 2016-06-02 · Prasanta Mahapatra, Adjudicating Officer

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Facts / Headnote

Show Cause Notice disposed of; Noticee not found liable for any violation

Provisions invoked

• s. 11B
• s. 11
• s. 15
• s. 11(1)
• s. 12A
• s. 15G
• s. 15J

Regulations

• Reg. 3
• Reg. 3(i)
• Reg. 2(e)
• Reg. 12
• Reg. 201
• Reg. 12A(d)
• Reg. 12A

Parties

• Prakash Lohia

Holding

The Noticee, Prakash Lohia, was held not to have violated Regulation 3(i) and 3(ii) of the SEBI (Prohibition of Insider Trading) Regulations, 1992 and Section 12A(d) and 12A(e) of the SEBI Act read with Regulation 12 of the PIT Regulations, 2015, and the Show Cause Notice was disposed of without imposing any penalty.

Full text

Adjudication Order in the matter of Palred Technologies Ltd. Page 2 of 14 Directors 01-Sep-2012 to 31-Mar-2014 Name Designation Date of Joining Date of Cessation Palem S. Reddy Chairman & Managing Director 24.12.1999 NA A. Mohan Krishna Reddy Non-Executive Independent Director 19.06.2009 NA T.R.Sivarama Krishnan Non-Executive Independent Director 06.02.2009 NA Edara Srinivas Prasad Non-Executive Independent Director 19.03.2009 NA Prof.Janat Shah Non-Executive Independent Director 12.11.2010 01.10.2013 K.V.Ramakrishna Nominee Director 11.10.2005 30.09.2013 P Soujanya Reddy Non-Executive Director 09.08.2011 13.10.2013 A.Sridhar Company Secretary and Compliance Officer 10.08.2012 09.03.2013 M. Raghuram 09.03.2013 NA

Adjudication Order in the matter of Palred Technologies Ltd. Page 3 of 14 APPOINTMENT OF ADJUDICATING OFFICER 4. Pursuant to the investigation, Shri Nagendra Parekh was appointed as Adjudicating Officer (hereinafter referred to as “AO”) SEBI Act read with Rule 3 of the SEBI (Procedure of Holding Inquire and Imposing Penalties by Adjudicating Officer) Rules, 1995, vide order dated June 02, 2016, to inquire into and adjudge against the Noticee, in terms of Section 15G of SEBI Act, for the alleged violation of Regulation 3(i) and 3(ii) of PIT Regulations, 1992 and Section 12A(d) and 12A(e) of the SEBI Act read with Regulation 12 of SEBI (Prevention of Insider Trading) Regulations, 2015 (hereinafter referred to as "PIT Regulations 2015") by the Noticee. Subsequently, the matter of conducting Adjudication Proceedings in the matter of PTL was assigned to the undersigned and the undersigned was appointed as AO vide Order dated May 18, 2017. The appointment of the undersigned as AO was communicated vide communique dated August 02, 2017.

Adjudication Order in the matter of Palred Technologies Ltd. Page 4 of 14 Therefore, the period of UPSI-I was considered to be September 18, 2012 to August 10, 2013 and the Company informed that the trading window closure period was from August 08, 2013 to August 13, 2103. Similarly, UPSI-II came into existence on September 12, 2013 (the day when decision to refund by capital reduction was first initiated) and continued till October 14, 2013 (the day when the Company informed BSE that the BoD at their meeting held on October 13, 2013 had approved the dividend of Rs. 29/- per share and reduction of capital to the extent of 50% of paid up capital by paying Rs. 29/- per share). Therefore, UPSI-II period was September 12, 2013 to October 14, 2013 and the Company informed that the trading window closure period was from October 10, 2013 to October 15, 2013. The SCN alleged that the Noticee was an employee of the Company from January 2007 to April 2011. The Notice submitted that, he had sent a congratulatory message to Palem S. Reddy (now Late Mr. Palem S Reddy), Chairman and Managing Director of the company (CMD), after the announcement of slump sale of business of the Company. Hundred percent of the trading activity of the Noticee since April 2011, was in shares of the company. He purchased 25972 shares during UPSI-I period for Rs. 3.74 lacs. After announcement of PSI-I, he purchased 11000 shares and after announcement of PSI-II he sold 37731 shares. Upon seeking rationale/reasoni

Source: SecMarx — sebi:Order/PM/AN/2021-22/12548. 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.