Sebi dismisses matters against Suzlon's two directors

The case related to allegations that the two directors delayed amendment to the code of conduct related to insider trading

Sebi has dismissed matters that alleged delaying implementation of norms related to insider trading by wind turbine maker Suzlon Energy's two directors -- Mythili Balasubramanian and Vinod Tanti.

However, the market regulator observed that Suzlon's board violated regulations by delaying the implementation of amendments related to insider trading norms.

"It is clear from the material available on record that the board was aware of the requirement to implement a new code of conduct and inspite of this, the board deferred even the deliberation on the code of conduct for two meetings.

"Thus, it is clear that Suzlon delayed the implementation of new code of conduct... In the present matter, it is clear that the board, by delaying the implementation, has acted in violation," Sebi said in similarly-worded two separate orders.

Meanwhile, disposing off the matters against the two directors, the market regulator said that allegations were not established.

The matters related to allegations that the two directors delayed amendment to the code of conduct related to insider trading.

As per norms regarding insider trading, all listed companies are required to frame a code of internal procedures, among others. This regulation was notified by Sebi in 2008.

However, the petitions alleged that Suzlon had amended its code of internal procedures and conduct for prevention of insider trading on February 4, 2011, after a delay of more than two years.

It was also alleged that both the directors were responsible for the delay in amendment and implementation of the Code of Conduct, making them liable to pay penalty.

However in their submission Balasubramanian and Tanti have said that the code of conduct was approved by the company's board on February 4, 2011. Both directors had attended their first board meeting only on that day.