sebi:PKK/AO/125/2011
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Facts / Headnote
Penalty imposed on the Noticee for violation of Insider Trading Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 12
- s. 15I
- s. 15J
- s. 4A
Regulations
- Reg. 12
- Reg. 2
Parties
- PEL (Noticee)
Holding
The Noticee (PEL) violated Regulation 12(3) read with Clause 3.2 of the Model Code of Conduct specified in Part-A of Schedule I of the Insider Trading Regulations by failing to implement and comply with the Model Code of Conduct, including failing to close the trading window during the period when price sensitive information was unpublished. A monetary penalty of Rs. 5,00,000 was imposed under Section 15HB of the SEBI Act.
Full text
Page 2 of 12 clearance of trades, reporting requirements and penalty. PEL and its Board of Directors allegedly failed to adopt, provide for the mechanism/procedure, implement and comply with the abovementioned Model Code of Conduct. In view of the same, PEL is alleged to have violated Regulation 12 (1) & (3) read with Clauses 1.2, 3.2 and 3.3 of the Model code of conduct specified in Part A of Schedule I of the Insider Trading Regulations.
Page 3 of 12 (3) read with Clauses 1.2, 3.2 and 3.3 of the Model code of conduct specified in Part A of Schedule I of the Insider Trading Regulations. The
Page 4 of 12 annual accounts and for declaration of dividend was circulated to Board of Directors of the Company on November 25, 2006. The information about annual accounts and declaration of dividend fall within the category of ‘price sensitive information’ as provided under Regulation 2 (ha) of the Insider Trading Regulations. The Company informed public about approval of dividend and annual accounts by its Board of Directors on December 05, 2006. As such, the information about the same was unpublished from November 25, 2006 to December 05, 2006. As per the Company’s reply dated February 01, 2011 (copy provided as Annexure-3 to the SCN), Shri Sekhani received agenda about annual accounts and dividend (i.e. Shri Sekhani was in possession of the unpublished price sensitive information of PEL) on November 26, 2006. Shri Sekhani sold 2,25,000 shares of PEL on November 29, 2006 and 7,50,000 shares of PEL on December 04, 2006 (i.e. a total of 9,75,000 shares) when in possession of unpublished price sensitive information. This shows that the Company failed to close the trading window.
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Source: SecMarx — sebi:PKK/AO/125/2011. 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.