sebi:Order/PM/SM/2021-22/11381

SEBI · SEBI · 2020-05-05 · Prasanta Mahapatra, Adjudicating Officer

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Facts / Headnote

Violation of Regulation 7(2)(a) of PIT Regulations established on 18 instances; minimum penalty of Rs. 1,00,000 imposed

Provisions invoked

• s. 15A
• s. 15
• s. 19
• s. 15J

Regulations

• Reg. 7(2)(a)
• Reg. 7(2)(b)

Parties

• Victor Peter Christopher

Holding

The Noticee violated Regulation 7(2)(a) read with Regulation 7(2)(b) of the PIT Regulations on 18 separate instances by failing to disclose transactions in ITC shares and derivatives within two trading days, and a minimum penalty of Rs. 1,00,000 was imposed under Section 15A(b) of the SEBI Act.

Full text

Adjudication order in respect of Victor Peter Christopher in the matter of ITC Limited Page 2 of 18 Regulations by the Noticee. During the investigation, it was observed by SEBI that the Noticee was allotted Employee Stock Options by ITC. Pursuant to the above, the Noticee had exercised his options and he was allotted 15,970 shares by ITC on September 24, 2018. Subsequently, the Noticee sold the aforesaid 15,970 shares on October 01, 2018.It is further observed that the Noticee had also traded in the scrip of ITC in the derivative segment of stock exchanges.

Adjudication order in respect of Victor Peter Christopher in the matter of ITC Limited Page 3 of 18 5. A Show Cause Notice ref. SEBI/EAD-8/PM/VC/14289/2020 dated September 03, 2020 (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 15A(b) of the SEBI Act for alleged violation of the relevant provision of PIT Regulations.

Adjudication order in respect of Victor Peter Christopher in the matter of ITC Limited Page 4 of 18 c. In this regard, it is observed from the details of trades of the Noticee that the following trade had taken place from the account of the Noticee in the cash segment during the Investigation Period: Table 1: Details of transactions of Noticee in Cash Segment Sr. No Transaction Date Nature of Transaction No. of Shares Value (Rs) 1 October 01, 2018 Sale 15,970 47,51,560 The Noticee through Email dated December 12, 2019 has confirmed the abovementioned transaction. d. It is further observed that the Noticee had also traded in the scrip of ITC in the derivative segment and the details of such transactions are as below: Table 2: Details of transactions of Noticee in Derivative Segment SI. No. Date Buy Qnty. Sell Qnty. Buy Value Sell Value Gross Trade Value 1 12-Apr-2018 2,400 2,400 6,30,000.00 6,31,440.00 12,61,440.00 2 24-Apr-2018 12,000 12,000 33,25,560.00 33,24,840.00 66,50,400.00 3 25-Apr-2018 2,400 2,400 6,57,360.00 6,59,040.00 13,16,400.00 4 26-Apr-2018 4,800 4,800 13,20,480.00 13,21,800.00 26,42,280.00 5 04-Jun-2018 2,400 0 6,45,840.00 0.00 6,45,840.00 6 05-Jun-2018 2,400 4,800 6,45,120.00 12,91,440.00 19,36,560.00 7 27-Auq-2018 2,400 2,400 7,53,120.00 7,53,000.00 15,06,120.00 8 28-Aug-2018 2,400 2,400 7,49,760.00 7,50,240.00 15,00,000.00 9 07-Sep-2018 2,400 2,400 7,45,680.00 7,49,160.00 14,94,840.00 10 11-Sep-2018 2,400 2,400 7,20,360.00 7,18,560.00 14,38,920.00 11 24-Sep

Source: SecMarx — sebi:Order/PM/SM/2021-22/11381. 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.