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Markets regulator Sebi today disposed of proceedings against late Dilip Pendse, former managing director of Tata Finance, in an insider trading case saying a penalty is not imposable as he has already been penalised through earlier orders.
It was alleged that Pendse, in 2001, had facilitated sale of one lakh shares of the company worth Rs 69 lakh held by the then Director J E Talaulicar and his family, while he was in possession of the 'unpublished price sensitive information' (UPSI).
Earlier this month, Pandse had allegedly committed suicide.
"The available evidence could show probability of some role in helping/assisting Talaulicar in sale of the shares after his decision to sell while he was in possession of the UPSI but such role/involvement cannot be termed as 'organizing Talaulicar to deal in securities on the basis of UPSI'," Sebi Adjudicating Officer Santosh Shukla said in an order passed today.
With regard to such role, the Adjudicating Officer said that Pendse has already been penalised under the PIT (Prohibition of Insider Trading) Regulations, wherein he had been directed to dissociate himself from the securities market and not deal in securities for a specified period and he has already suffered such restraint.
Pendse was dismissed from Tata Finance in 2001 after the company arm ran huge losses and the group filed criminal charges against him.