SEBI FINES DIRECTOR OF ACCLAIM INDUSTRIES FOR
VIOLATING INSIDER TRADING NORMS
ACCORDING TO SEBI, ABHISHEK MEHTA WAS MANAGING
DIRECTOR AND PROMOTER OF THE FIRM AT THE TIME OF VIOLATION.
PENALTY OF RS
42 LAKH ON A DIRECTOR OF ACCLAIM INDUSTRIES
Markets
regulator SEBI has slapped a penalty of Rs 42 lakh on a director of Acclaim
Industries for violating insider trading norms.
According to Sebi, Abhishek Mehta was managing director and
promoter of the firm at the time of violation.
VIOLATION
DURING THE MERGER PROPOSAL
In
an order, the regulator said it conducted a probe from January to December 2012
regarding the change in the shareholding of Mehta after the company's board
principally approved the proposal of merger of the firm with Database Software
Technology Pvt Ltd (DSTPL) in January 2012.
NON-INTIMATION
TO STOCK EXCHANGES
During
the examination, SEBI observed that in February, the board decided not to merge
the firm with DSTPL. However, the decision was not informed to the exchange.
Moreover, in August, the firm informed exchange that a meeting will be scheduled for share exchange ratio and scheme of amalgamation regarding the merger with DSTPL.
The
information was misleading as the decision of cancellation of merger was
already taken in the earlier months, SEBI said.
Regarding Mehta, the
regulator said being managing director of the firm, he made misleading
announcements and had knowledge of company's decision of cancellation of
merger.
UPSI
(UNPUBLISHED SENSITIVE INFORMATION)
Besides, by
selling shares and reducing his shareholding, Mehta was trading when in
possession of UPSI (unpublished sensitive information), SEBI said in an order
dated January 25.
PROHIBITION
OF INSIDER TRADING
By trading when in possession of UPSI, Mehta contravened PIT
(Prohibition of Insider Trading) regulations, Securities and Exchange Board of
India (SEBI) said, and thereby imposed fine on him.
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