sebi:QJA/VS/IVD/ID6/25067/2022-23
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Facts / Headnote
Noticee Nos. 1 to 3 held liable for insider trading in Apex Frozen Foods Ltd during UPSI period and for related PIT violations; directed to disgorge notional unlawful gains to SEBI-Investor Protection and Education Fund and to pay monetary penalties, with restraint on dealing in assets until disgorgement and penalty are deposited.
Provisions invoked
- s. 19
- s. 11(1)
- s. 11B
- s. 12A
- s. 11
- s. 15H
- s. 15G
- s. 15J
- s. 307
- s. 15F
- s. 2(13)
Regulations
- Reg. 3
- Reg. 2(c)
- Reg. 2(e)
- Reg. 4(1)
- Reg. 2(1)(d)
- Reg. 2(1)(g)
- Reg. 2(1)(d)(i)
- Reg. 9(1)
- Reg. 2(1)(n)(i)
- Reg. 3(1)
- Reg. 3(2)
- Reg. 2(1)(g)(i)
- Reg. 4(2)
- Reg. 15H
- Reg. 2(n)
- Reg. 15G
Parties
- K. Satyanarayana Murthy (Noticee No. 1, CMD and Promoter)
- Noticee No. 2 (Promoter, wife of Noticee No. 1)
- Ravi Kanth Sankuratri (Noticee No. 3, son-in-law of Noticee Nos. 1 and 2)
Holding
The Q2 September 2017 financial results information was UPSI during October 3, 2017 to November 14, 2017, and Noticee Nos. 1-3 as insiders traded in AFF while in possession of / on the basis of UPSI in violation of Sections 12A(d) and (e) read with Regulations 3 and 4 and Clause 6 Schedule B read with Regulation 9(1), attracting disgorgement and penalty.
Full text
Order in the matter of Apex Frozen Foods Ltd. Page 2 of 40 1. Background of the Case: 1.1. Apex Frozen Foods Ltd (hereinafter referred to as “AFF” or “Company”) disclosed its financial results for the quarter ended September 30, 2017 on November 14, 2017 on BSE at 16:36 hrs. and on NSE at 16:45 hrs. respectively. It was observed from the said financial results that AFF made a profit of ₹ 2,204.32 lakh in the quarter ended September 2017 as against the profit of ₹1,664 lakh in the previous quarter.
Order in the matter of Apex Frozen Foods Ltd. Page 3 of 40 frozen stores and distributors spread across the developed markets of USA, UK and various European Countries.
Order in the matter of Apex Frozen Foods Ltd. Page 4 of 40 Noticee No. 1 who was also the Promoter of the Company and their son Mr. Subrahmanya Chowdary Karuturi was the Whole Time Director of the Company. Noticee No.3, was son-in-law of Noticee Nos. 1 and 2.
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Source: SecMarx — sebi:QJA/VS/IVD/ID6/25067/2022-23. 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.