sebi:Order/SKV/DP/2023-24/29990

SEBI · SEBI · 2023-08-23 · Shashikumar Valsakumar, Adjudicating Officer

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Facts / Headnote

Penalty of INR 1,00,000 under Section 15A(b) and INR 1,00,000 under Section 15HB imposed; no penalty for contra trade where profit disgorged

Provisions invoked

• s. 15A
• s. 15
• s. 19
• s. 15H
• s. 15J
• s. 28A
• s. 15Z

Regulations

• Reg. 11
• Reg. 7(2)
• Reg. 7(2)(a)
• Reg. 7(2)(b)
• Reg. 9(1)

Parties

• Priyanka Brijmohan Chiripal

Holding

The Noticee violated Clause 6 of Schedule B read with Regulation 9(1) and Regulation 7(2) of PIT Regulations for failure to obtain pre-clearance and to disclose trades exceeding Rs.10 lakh, but no penalty was imposed for the contra trade under Clause 10 as profits were disgorged to IPEF; penalty of Rs.1 lakh each under Sections 15A(b) and 15HB was imposed.

Full text

Adjudication Order in the matter of Vishal Fabrics Ltd. Page 2 of 16 APPOINTMENT OF ADJUDICATING OFFICER 2. SEBI had appointed undersigned as the Adjudicating Officer (hereinafter referred to as ‘AO’) in the matter vide communique dated August 23, 2023 under Section 15-I of the SEBI Act read with Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules’) read with Section 19 of the SEBI Act, 1992, to inquire into and adjudge under the provisions of the Sections 15A(b) and15HB of the SEBI Act, for the violations alleged to have been committed by Priyanka Brijmohan Chiripal (hereinafter referred to as “Noticee”).

Adjudication Order in the matter of Vishal Fabrics Ltd. Page 3 of 16 email dated January 11, 2023 and January 18, 2023, inter-alia, submitted the following:  VFL was not aware of such transaction and has only after the SEBI’s email sent on January 09, 2023 became aware of the same.  Since the value of the transaction is in excess of ten lakhs, in compliance with Regulation 7(2)(b) of the SEBI (PIT) Regulations, 2015, VFL is in the process of notifying the particulars of such trading to the stock exchange within two trading days from becoming aware of such information through the SEBI email sent on January 09, 2023.  In compliance with Clause 10 of Schedule B of SEBI (PIT) Regulations, 2015, VFL has penalized by disgorging the profits of abovementioned trades amounting to Rs.1,91,112.70 for remittance to SEBI for credit to the Investor Protection and Education Fund. Remittance has been done through NEFT (IB Ref. no. 230113173825) in favour of SEBI IPEF.  Priyanka Brijmohan Chiripal had not obtained any pre-clearance during the month of September 2020.

Adjudication Order in the matter of Vishal Fabrics Ltd. Page 4 of 16 3.5.1 executed contra trade in less than 6 months of her prior transaction during the month of September 2020 and thus, violated Clause 10 of Schedule B Minimum Standards for Code of Conduct to regulate, monitor and report trading by designated persons read with Regulation 9(1) of SEBI (PIT) Regulations, 2015; 3.5.2 Did not obtain pre-clearance for her trades executed in the scrip of VFL during the month of September 2020 and therefore, it was alleged that she had violated Clause 6 of Schedule B Minimum Standards for Code of Conduct to regulate, monitor and report trading by designated persons read with Regulation 9(1) of SEBI (PIT) Regulations, 2015. 3.5.3 Did not make disclosure w.r.t. trading in the scrip of VFL exceeding Rs.10 lakh and therefore, it was alleged she had violated Regulation 7(2)(a) of SEBI (PIT) Regulations, 2015.

Source: SecMarx — sebi:Order/SKV/DP/2023-24/29990. 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.