sebi:PKK/AO/265/2010
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Facts / Headnote
PFUTP charges not established; monetary penalty of Rs. 1,00,000 imposed under Section 15A(b) for violation of Regulation 13(4) & (5)
Provisions invoked
- s. 15A
- s. 15
- s. 15I
- s. 15J
Regulations
- Reg. 3
- Reg. 4
- Reg. 13
- Reg. 4(1)
Holding
The Noticee did not violate Regulations 4(1) and 4(2)(a) & (e) of the PFUTP Regulations, but violated Regulation 13(4) & (5) of the Insider Trading Regulations, warranting a monetary penalty of Rs. 1,00,000 under Section 15A(b) of the SEBI Act.
Full text
Page 2 of 9 director of SCL from October 17, 2003 and became the Managing Director of the Company from October 01, 2004. Her residential address was the office address of some of the clients who had indulged in unfair trade practice and manipulation in the scrip of SCL. She had also introduced some of the clients for opening DP account. During the investigation period, she dealt in the scrip of SCL which resulted in a change in the shareholding to the extent of more than 25,000 shares and 1% share capital of SCL. She failed to make disclosures as required under the provisions of the SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as the ‘Insider Trading Regulations’).
Page 3 of 9 matter vide SEBI Order dated November 23, 2007. Consequent to the transfer of Mr. Deore to the Enforcement Department, SEBI vide order dated August 17, 2010 appointed the undersigned as the AO in the instant matter.
Page 4 of 9 7. The Noticee had acquired 2,30,000 shares, constituting 4.5% of total shares of SCL, during the period October 01, 2003 to December 31, 2003. Since the Noticee was a director of SCL during the said period and after the said acquisition, the change in her total shareholding exceeded 25,000 shares and 1% in terms of number and percentage respectively, she was required to make disclosures under Regulation 13 (4) & (5) of the Insider Trading Regulations. She had failed to make the said disclosures.
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Source: SecMarx — sebi:PKK/AO/265/2010. 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.