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Markets watchdog Sebi today imposed a total penalty of Rs 8 lakh on Aanjaneya Lifecare's five senior officials for not complying with 'model code of conduct' under prevention of insider trading regulation.
It has slapped a fine of Rs 5 lakh on Kannan Vishwanath, Vice Chairman and Managing Director of Aanjaneya Lifecare (now known as Dr Datsons Labs Ltd) for trading in the company's shares without obtaining pre-clearance from the firm as required, Sebi said in an order.
Besides, he executed "opposite transactions within 6 months of the earlier transaction". By indulging in such activities, he violated model code of conduct for prevention of insider trading, it added.
Further, a penalty of Rs 3 lakh has been imposed on board of directors --Vishwanath, Shashikant Babanrao Shinde, Prabhat Kumar Goyal, Paul Chakkapah Naythatil -- and compliance officer Yogesh Patel for failing to implement the code of conduct and monitor the trades for prevention of insider trading, as per the order.
"For orderly conduct of securities market, it is of utmost importance that the key managerial personnel including the board of directors and compliance officer shall adhere to the statutory code on insider trading," Sebi said.
Under the norms, all directors and officers of the firm who intend to deal in the securities of a company are required to pre-clear the transaction.
Further, such officials cannot enter into an opposite transaction -- sell or buy any number of shares during the next six months following the prior transaction.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)