New Delhi, Feb 28 (PTI) An individual has settled with markets regulator Sebi a case related to alleged violation of insider trading norms while dealing in the shares of HDFC Bank.
Samrat Dasgupta has settled the case by paying a settlement amount of nearly Rs 24 lakh to the Securities and Exchange Board of India (Sebi).
Dasgupta was part of a WhatsApp group wherein Unpublished Price Sensitive Information (UPSI) pertaining to the financial results of HDFC Bank for the quarter ended June 2017 was circulated on July 21, 2017.
These financial results were declared by the lender to the exchanges subsequently on July 24, 2017. By virtue of being part of the WhatsApp group and having access to the messages containing UPSI, he was alleged to be an insider.
While in possession of the said UPSI, Dasgupta (applicant) traded in the securities of HDFC.
Pending the proceedings, he filed a settlement application with the regulator, proposing to settle the case without admitting or denying the guilt.
The high powered advisory committee considered the settlement terms proposed by the applicant and recommended the case for settlement upon payment of Rs 23,90,625.
After the applicant paid the amount, Sebi in an order on Monday said, “it is hereby ordered that the proceedings that may have been initiated for the default … are settled qua the applicant”.
Through another order, Sebi imposed a fine of Rs 1 lakh on an employee of Titan Company Ltd — Kuppuswamy Kanivel — for violation of insider trading norms.
While in employment of Titan, he had transacted in the securities of Titan on three occasions.
The cumulative values of trades on these occasions exceeded Rs 10 lakh, thereby necessitating disclosure of such transactions in terms of PIT (Prohibition of Insider Trading) norms. However, he had failed to comply with the norms on two occasions, following which he has been penalised. PTI SRS RAM
