NEW DELHI: Markets regulator Sebi on Wednesday imposed a total fine of Rs 7 lakh on Suprajit Engineering Ltd and three individuals for violating insider trading norms.
A fine of Rs 2 lakh has been slapped on Suprajit Engineering Ltd (SEL), Rs 3 lakh on Jayarama Shetty Mundaje, and Rs 1 lakh each on Mohan Srinivasan Nagamangala and Meddapa Gowda J, respectively.
Mundaje was a director, Nagamangala was a president and Gowda is compliance officer at SEL.
An investigation into the scrip of Suprajit Engineering, the watchdog found instances of violations during the October 2014 to June 2016 period.
Among others, it was found that Mundaje and Srinivasan had not obtained pre-clearance for trading in the company’s shares. This was in violation of minimum standards for code of conduct to regulate, monitor and report trading by insiders under PIT (Prohibition of Insider Trading) norms, as per an order.
Sebi also said that several designated employees and their related entities had also traded in the company’s shares without pre-clearances.
SEL and Gowda failed to implement/ administer and monitor code of conduct and did not comply with the provisions of PIT norms, according to the order.
“I am of the view that the object and spirit of the PIT Regulations, 2015 would get defeated if the violators… are not dealt as per the spirit of PIT Regulations, 2015.
“Therefore, I am not inclined to view the lapse on the part of the noticees leniently and consider it necessary to impose monetary penalty on the noticees,” Sebi’s Adjudicating Officer G Ramar said in the order.
Credit: Stocks-Markets-Economic Times