sebi:Order/VV/AK/2021-22/15273
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Facts / Headnote
Noticee found to have violated insider trading regulations; penalty determination under Sections 15G(ii) and (iii), 15HA and 15HB of SEBI Act to be considered
Provisions invoked
- s. 15
- s. 19
- s. 12A
- s. 15H
- s. 15I
- s. 15G
- s. 15J
- s. 15F
- s. 28A
- s. 15I(1)
Regulations
- Reg. 7(1)
- Reg. 199
- Reg. 15
- Reg. 200
- Reg. 2
- Reg. 3
- Reg. 201
- Reg. 12(1)
- Reg. 12(2)
- Reg. 3(d)
- Reg. 12(1)(e)
Parties
- Noticee (research analyst at Ambit Capital Private Limited)
Holding
The Noticee, a research analyst at Ambit Capital Private Limited, violated Regulation 12(1)(e) of the PIT Regulations, 1992 read with the Code of Conduct in Part B of Schedule I, by failing to maintain confidentiality of unpublished price sensitive information (UPSI) received during a meeting with Manappuram Finance Limited (MFL) representatives, and by communicating such information through a research report.
Full text
Page 2 of 36 14.25% on March 20, 2013. MFL announced its financial results for the quarter ended March 31, 2013 on May 15, 2013 at 17:45 hrs. On May 16, 2013 the price of the scrip on the BSE fell from a closing price of Rs.16.00 on 15/05/2013 to a closing price of Rs.15.00 on 16/05/2013 (i.e., a decrease of 6.25%)
Page 3 of 36 APPOINTMENT OF ADJUDICATING OFFICER 4. SEBI, vide communique dated June 21, 2016, appointed an Adjudicating Officer under section 19 read with section 15I(1) of the SEBI Act and Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter, referred to as ‘Adjudication Rules’) to conduct adjudication proceedings in the manner specified under rule 4 of Adjudication Rules read with section 15I (1) and (2) of SEBI Act, and if satisfied that penalty is liable upon the Noticee for the aforesaid alleged violations, impose such penalty deemed fit in terms of Rule 5 of Adjudication Rules and the provisions of Sections 15G(ii) and (iii), Section 15HA and 15HB of SEBI Act. Consequent to change in Adjudicating Officer, Shri Jeevan Sonparote was appointed as the Adjudicating Officer in the present matter vide order / communique dated October 11, 2017. Thereafter, pursuant to the transfer of Shri Jeevan Sonparote, the undersigned was appointed as the Adjudicating Officer vide communique dated August 13, 2019.
Page 4 of 36 in a number of analyst meetings held by senior officials of Manappuram and also was known to the senior officials of Manappuram. The senior officials of Manappuram were well aware that my only role is to conduct research and prepare reports for the dissemination to the clients of Ambit Capital Private Limited and I had no other role or profile in Ambit Capital Private Limited or otherwise which would cause the senior officials of Mannapuram to disclose any unpublished price sensitive information to me. I was not informed the purpose for which the meeting was sought by the senior officials of Manappuram Finance Limited. In any event, at the meeting we had a general discussion, the details of which are submitted to SEBI and appended in Annexure G of the above referenced letter. Accordingly, I did not consider I should keep my
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Source: SecMarx — sebi:Order/VV/AK/2021-22/15273. 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.