sebi:RA/JP/228-229/2017
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Facts / Headnote
Penalty imposed upon Noticees under sections 15G and 15HB of the SEBI Act
Provisions invoked
- s. 15
- s. 12A
- s. 12
- s. 15G
- s. 15J
- s. 307
- s. 2(77)
Regulations
- Reg. 4
- Reg. 12(1)
- Reg. 3
- Reg. 3(i)
- Reg. 2
- Reg. 2(e)
- Reg. 2(h)
- Reg. 12
Parties
- Pavel Garg (Noticee No. 1)
- Poonam Garg (Noticee No. 2)
Holding
The Noticees, as insiders of Mudit Finlease Limited, traded in the company's shares during the period of Unpublished Price Sensitive Information (February 2, 2012 to February 21, 2012) in violation of regulation 3(i) and 4 of the PIT Regulations read with section 12A(d) and (e) of the SEBI Act. Noticee No. 1 was also held liable for failing to close the trading window and for belatedly communicating the Unaudited Financial Results to the stock exchange, violating clause 1.2 of the Code of Conduct read with regulation 12(1) and 12(3) of the PIT Regulations, attracting penalty under section 15HB.
Full text
Page 2 of 39 APPOINTMENT OF ADJUDICATING OFFICER 2. SEBI had initiated adjudication proceedings and vide order dated January 29, 2016 appointed the undersigned as the Adjudicating Officer under section 15 I of the SEBI Act read with rule 3 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules’) to inquire into and adjudge under section 15 G and 15 HB of the SEBI Act, the violations of aforesaid provisions of SEBI Act and PIT Regulations alleged to have been committed by the Noticees.
Page 3 of 39 December 2011. 3. 13-Feb-12 N.A. The Statutory Auditors completed the limited review of the financial results and presented the same further for review by the Audit Committee and for consideration of the Board of Directors. 4 13-Feb-12 N.A. The financial results were reviewed by the Audit Committee and the same were taken on record by the Board of Directors at their meeting. 5. 13-Feb-12 10:30 hrs Board Meeting 6. 21-Feb-12 13:00 hrs Official Public Announcement to stock exchange
Page 4 of 39 ended December, 2011 and thus the PSI was published on February 21, 2012. Therefore, the period of Unpublished Price Sensitive Information (UPSI) was between the period from February 02, 2012 to February 21, 2012.
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Source: SecMarx — sebi:RA/JP/228-229/2017. 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.