Markets regulator SEBI on Friday imposed a penalty ₹20 lakh on an individual for violation of insider trading norms in the shares of Videocon Industries Ltd.
Pradeep Kumar Dhoot is an immediate relative of Venugopal Dhoot who was the Chairman and Managing Director of Videocon during the relevant period.
Pradeep violated the Prohibition of Insider Trading (PIT) norms.
“Trading by any insider during the UPSI period and during the closing period of the window is against the legislative/regulatory framework established under SEBI PIT Regulations, 2015,” SEBI said.
The authorized representative – Pradeep Kumar Dhoot – was the insider who traded on behalf of the promoter of the company, CE India Ltd during the UPSI period.
SEBI conducted a probe between April-September 2017 for the possibility of insider trading and volume manipulation in the shares of Videocon by certain entities.
During investigation, it was found that, during the UPSI period, some of the promoters of Videocon had transferred their shares to other entities through off-market transactions and subsequently some of these shares were taken off the market. .
Pradeep, being an insider, used to carry out off-market transactions while in possession of unpublished Price Sensitive Information (UPSI).
The information regarding Classification of Videocon’s loan account as NPA by Dena Bank was likely to have a material impact on the price of Videocon Industries and was treated as UPSI.
The UPSI period was from March 1, 2017 to May 9, 2017. As a result, Pradeep is being fined ₹2 million.
This story has been published without modification in text from a wire agency feed.
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