sebi:WTM/AB/IVD/ID15/11511/2021-22
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Facts / Headnote
Noticees 1, 2 and 3 found guilty of insider trading with respect to UPSI-1 and UPSI-2; Noticees 1 to 6 found guilty of insider trading with respect to UPSI-2. Noticees 1, 2 and 3 restrained from trading in SEL securities for 3 years; Noticees 4, 5 and 6 restrained for 2 years. Noticees 4, 5 and 6 imposed penalty of Rs. 10 Lakhs each under Section 15G of SEBI Act, 1992. Noticees 1 to 6 directed to disgorge unlawful gains with penal interest. Allegation of violation of Model Code of Conduct pre-clearance clauses (3.3.1, 3.3.2, 3.3.3) not sustained.
Provisions invoked
- s. 19
- s. 370
- s. 12A
- s. 12
- s. 11
- s. 11A
- s. 15G
- s. 15J
- s. 307
- s. 372
- s. 15
- s. 149(6)
- s. 4A
- s. 11(5)
- s. 11B(2)
- s. 11B(1)
Regulations
- Reg. 12(1)
- Reg. 3
- Reg. 199
- Reg. 2
- Reg. 3(i)
- Reg. 4
- Reg. 2(c)
- Reg. 2(e)
- Reg. 4(1)
- Reg. 12
- Reg. 201
- Reg. 2(h)
- Reg. 1
- Reg. 12(2)
- Reg. 2(1)(d)
- Reg. 2(1)(g)
- Reg. 2(1)(d)(i)
- Reg. 9(1)
- Reg. 3A
- Reg. 2(c)(i)
Parties
- Suresh Shetty (Noticee No. 1)
- Suresh Shetty (HUF) (Noticee No. 2)
- Emerging Securities Private Limited (ESPL) (Noticee No. 3)
- Reetha Shetty (Noticee No. 4)
- M/s Vanijya Investment and Trading (Noticee No. 5)
- Shruti Shetty (Noticee No. 6)
Holding
Noticees 1, 2 and 3 were found to have traded in the scrip of Suprajit Engineering Ltd. while in possession of UPSI-1 (proposed acquisition of PLL) and UPSI-2 (merger of PLL with SEL), violating Regulation 3(i) and 3(ii) of PIT Regulations, 1992 and Section 12A(e) of the SEBI Act, 1992; Noticees 1 to 6 were found to have traded while in possession of UPSI-2 in violation of PIT Regulations, 2015. The allegation of violation of pre-clearance requirements under the Model Code of Conduct was not sustained because pre-clearance is inapplicable when a person is already in possession of UPSI.
Full text
Final Order in the matter of insider trading in the scrip of Suprajit Engineering Ltd. Page 1 of 60 WTM/AB/IVD/ID15/11511/2021-22
Final Order in the matter of insider trading in the scrip of Suprajit Engineering Ltd. Page 2 of 60 2. The key findings of the investigation as contained in the SCN and the allegations levelled therein against the Noticees, in brief, are reproduced hereunder:
Final Order in the matter of insider trading in the scrip of Suprajit Engineering Ltd. Page 3 of 60 e. With respect to merger of PLL with SEL i.e. UPSI 2, from chronology of events provided by the Company, it was noticed that that the first discussion related to merger started in first week of April 2016. On the basis of submissions made by SEL and others, investigation found that discussion related to merger started in the first week of April 2016. Therefore, Investigation Period for UPSI 2 has been
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Source: SecMarx — sebi:WTM/AB/IVD/ID15/11511/2021-22. 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.