sebi:WTM/MB/IVD/ID16/10770/2020-21
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Facts / Headnote
Both Noticees found in violation; disgorgement of Rs. 5,66,006/- with 10% p.a. interest imposed on Noticee No. 1 along with 1-year restraint from securities market; penalty of Rs. 4,00,000/- imposed on Noticee No. 2 under Section 15A(b) of the SEBI Act.
Provisions invoked
- s. 11
- s. 15A
- s. 19
- s. 11(1)
- s. 11B
- s. 15H
- s. 15
- s. 15J
- s. 11B(2)
- s. 11B(1)
Regulations
- Reg. 9
- Reg. 7(2)(a)
- Reg. 2(1)(l)
- Reg. 7(2)(b)
- Reg. 9(1)
- Reg. 9(3)
Parties
- Mr. Pereira Sebastian Ruzario (Noticee No. 1)
- Mr. Harshavardhan Panigrahi (Noticee No. 2)
Holding
Noticee No. 1 (Sebastian Ruzario Pereira), a designated person, violated the Code of Conduct and PIT Regulations by failing to obtain pre-clearance for trades exceeding Rs. 10 lakhs, failing to disclose such trades under Regulation 7(2)(a), and executing 66 contra trades without disgorging profits. Noticee No. 2 (Harshavardhan Panigrahi), the Compliance Officer, violated Regulation 7(2)(b) read with Regulation 9(3) by failing to disclose transactions to stock exchanges despite having access to RTA reports showing threshold crossings.
Full text
Order in the matter of Disclosure Requirements pertaining to trading in the scrip of Marksans Pharma Ltd. Page 1 of 44 WTM/MB/IVD/ID16/10770/2020-21
Order in the matter of Disclosure Requirements pertaining to trading in the scrip of Marksans Pharma Ltd. Page 2 of 44 2. Thereafter, the matter was taken up for further detailed investigation to determine whether there was any violation of the Code of Conduct or disclosure requirements in terms of the PIT Regulations by Noticee No. 1. The period of investigation is from May 31, 2015, to December 31, 2016 (hereinafter referred to as the “Investigation Period/ IP”). During the investigation period, it was observed that Noticee No. 2 was the Compliance Officer of MPL. Pursuant to the investigation, two separate Show Cause Notices (SCNs) dated February 24, 2020, were issued to both the Noticees
Order in the matter of Disclosure Requirements pertaining to trading in the scrip of Marksans Pharma Ltd. Page 3 of 44 period, his trading in the scrip of MPL had crossed the threshold of Rs. 10 lakhs in a calendar quarter, for which disclosure was required to be made in terms of Regulation 7(2)(a) of the PIT Regulations to the Company. However, no such disclosures were made by Noticee No. 1 to the Company.
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Source: SecMarx — sebi:WTM/MB/IVD/ID16/10770/2020-21. 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.