Capital markets regulator Sebi on Thursday imposed penalties totalling Rs 45 lakh on two individuals for indulging in insider trading in the shares of Ltd. The regulator has slapped a fine of Rs 25 lakh on Naresh Ramniklal Mehta and Rs 20 lakh on his wife Pallavi Naresh Mehta, and also directed them to pay the fine within 45 days, according to an order.
Sebi noted that Naresh is a director of Nishant Infin, which provided business services to
and its subsidiaries. Also, Naresh is a cousin of Sailesh Mehta, who is the Managing Director of Deepak Fertilizers.
Therefore, Naresh is reasonably expected to have access to information pertaining to Deepak Fertilizers, it said.
As per the order, the Mehta couple traded in the scrip of Deepak Fertilizers while in possession of Unpublished Price Sensitive Information (UPSI) pertaining to the financial results of the company for the quarter ended June 30, 2020.
“The noticees (Mehtas) had bought shares relying on the UPSI, anticipating increase in the price of the scrip when the UPSI would become public. Thereafter, when the UPSI finally became public, they offloaded almost all the shares they had bought, earning profits as a result of the increase in price of the scrip,” Sebi said.
Naresh and Pallavi earned actual profits of Rs 12.40 lakh and Rs 8.50 lakh respectively, in respect of their trades in the scrip of Deepak Fertilizers during the investigation period from June 2020 to September 2020.
By indulging in such trades the couple violated the provisions of insider trading norms, the order said.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
