sebi:WTM/ASB/IVD/ID18/30583/2024-25
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Facts / Headnote
Proceedings against Noticees 1, 3 and 4 disposed of without any directions; Noticees 2, 5 and 6 found liable for insider trading violations and imposed with monetary penalties, disgorgement of unlawful gains, and market access debars.
Provisions invoked
- s. 11
- s. 15A
- s. 19
- s. 11(1)
- s. 11B
- s. 12A
- s. 15H
- s. 15G
- s. 15J
- s. 15F
- s. 11(5)
- s. 2(60)
Regulations
- Reg. 3
- Reg. 4(2)
- Reg. 29(1)
- Reg. 29
- Reg. 4
- Reg. 2
- Reg. 4(1)
- Reg. 31
- Reg. 29(3)
- Reg. 7(2)(a)
- Reg. 31(2)
- Reg. 31(3)
- Reg. 2(1)(d)(i)
- Reg. 9(1)
- Reg. 30
- Reg. 3(1)
- Reg. 2(1)(n)
- Reg. 2(1)(g)(i)
Parties
- Prakash Laddha (Noticee 1)
- Prafulla Bhat (Noticee 2)
- Pradeep Khandagale (Noticee 3)
- Vishal Ahuja (Noticee 4)
- Vipul Lathi (Noticee 5)
- Anup Karwa (Noticee 6)
Holding
Noticees 2, 5 and 6 were found to have traded in the scrip of Prakash Constrowell Limited while in possession of unpublished price sensitive information (UPSI) relating to two work orders, in violation of Sections 12A(d) and 12A(e) of the SEBI Act read with Regulations 4(1) and 4(2) of the PIT Regulations, 2015, and were imposed with monetary penalties and disgorgement of unlawful gains. Noticees 1, 3 and 4 were exonerated and their proceedings disposed of without any directions.
Full text
Order in the matter of Prakash Constrowell Limited Page 2 of 34 Trading) Regulations, 2015 (“PIT Regulations, 2015”) and SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (“SAST Regulations, 2011”). The relevant findings of investigation, as mentioned in the SCN, are stated below.
Order in the matter of Prakash Constrowell Limited Page 3 of 34 4. Investigation revealed that the tender for the First Work Order was submitted on November 16, 2015 which was opened on February 9, 2016. Hence, the UPSI w.r.t. First Work Order came into existence on February 9, 2016 itself. PCL informed the exchanges about receipt of First Work Order on August 25, 2016. Accordingly, the period from February 9, 2016 to August 25, 2016 was
Order in the matter of Prakash Constrowell Limited Page 4 of 34 8. As per the findings of investigation, Noticees 1 to 6 were insiders of PCL, in terms of Regulation 2(1)(g)(i) and/or 2(1)(g)(ii) of the PIT Regulations, 2015. Noticees 1 to 6 allegedly traded in the scrip of PCL while in possession of/having access to UPSI, and thus violated provisions of Sections 12A(d) & (e) and 15G(i) of the SEBI Act, 1992 read with Regulations 4(1) and / or 4(2) of PIT Regulations, 2015. It was alleged that Noticees 2, 3, 5 and 6 had made unlawful gains through their trades while in possession of / on the basis of UPSI. Further, Noticee 2 allegedly communicated the UPSI to Noticees 5 and 6, and thus violated provisions of Section 15G(ii) of the SEBI Act, 1992 read with Regulation 3(1) of the PIT Regulations, 2015.
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Source: SecMarx — sebi:WTM/ASB/IVD/ID18/30583/2024-25. 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.