sebi:Order/PM/NK/2019-20/3795
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Facts / Headnote
Violation established; monetary penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 12
- s. 28A
- s. 4A
Regulations
- Reg. 12(1)
- Reg. 12
- Reg. 201
Parties
- Mr. Naishadh P. Desai
Holding
The Noticee violated Clause 3.3.1 of the Model Code of Conduct read with Regulation 12(1) of SEBI (PIT) Regulations, 1992 and Regulation 12 of SEBI (PIT) Regulations, 2015 by buying and selling 12,000 shares of FTIL without pre-clearance, and is liable to a monetary penalty of Rs. 12,00,000 under Section 15HB of the SEBI Act, 1992.
Full text
Page 2 of 13 Conduct") read with Regulations 12(1) of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as "SEBI (PIT) Regulations, 1992") and Regulation 12 of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (hereinafter referred to as " SEBI (PIT) Regulations, 2015").
Page 3 of 13 5. It was alleged in the SCN that the Noticee was Senior Vice President & Company Secretary of FTIL during March 24, 2008 to September 26, 2013 and as per the Code of Conduct for Prevention of Insider Trading of FTIL, he was “Officer” of FTIL. Further, as per clause 9(b)(i) of the said Code of Conduct for Prevention of Insider Trading of FTIL "all directors/officers/designated employees and their dependents who intend to deal in the securities of the company exceeding the minimum threshold limit of 5,000 shares in a calendar month shall obtain pre-clearance of the transaction(s) from the compliance officer before entering into the transaction". Further, Clause 3.3.1 specified in Part A of Schedule I of Model Code of Conduct provides that all directors/officers/designated employees of the company and their dependents as defined by the company who intend to deal in the securities of the company above a minimum threshold limit to be decided by the company should pre-clear the transaction as per the pre-dealing procedure described therein.
Page 4 of 13 September 21, 2018 vide letter dated September 10, 2018 which was delivered at the alternate address provided by the Noticee. The Noticee requested to postpone the scheduled hearing on September 21, 2018 which acceded to and another opportunity was provided on September 27, 2018. The Noticee attended the scheduled hearing and admitted to the violations alleged in the SCN and submitted that he will apply for settlement as per the SEBI (Settlement) Regulations. The Noticee applied for settlement under the SEBI (Settlement) Regulations. The said settlement application was rejected by SEBI and the undersigned informed accordingly vide internal communication dated July 8, 2019.
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Source: SecMarx — sebi:Order/PM/NK/2019-20/3795. 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.