 "JM Financial's Atul Saraogi settles insider trading case with Sebi")
JM Financial Ltd's former vice president Atul Saraogi has settled an alleged insider trading case with Sebi by paying an amount of Rs 15 lakh towards settlement charges.
During November 2013 to December 2016, the Securities and Exchange Board of India (Sebi) had conducted an investigation in case of alleged insider trading by Saraogi and his mother-in-law Vimala Devi Kalantri in the scrip of JM Financial Limited (JMFL), the regulator said in its order on Thursday.
During the span of investigation, Sebi observed that Saraogi had entered into off-market trades in shares of JMFL and transferred 41,246 shares to his mother-in-law in December 2013.
He also acquired 41,246 shares of JMFL through an off-market transaction from Kalantri in October 2014.
Sebi noted that Saraogi had not obtained pre-clearance from JMFL for the two off-market trades. Besides, he had entered the off-market transaction in October 2014 when the trading window was closed.
By indulging in such trades, he allegedly violated the code of conduct adopted by JMFL as required under PIT (Prohibition of Insider Trading) Regulations.
Pursuant to this, a notice was issued to Saraogi, calling upon him to show cause as to why an inquiry should not be held against him.
Subsequently, he filed an application with Sebi and proposed to settle the case under the settlement terms for alleged violation of insider trading norms.
The regulator considered the proposed settlement terms and recommended the case for settlement upon payment of Rs 15.05 lakh.
Accordingly, he made the payment, following which Sebi disposed of the case.
In a separate settlement order, Sebi said Sonata Software Ltd has settled a case of alleged violation of insider trading norms by paying Rs 3 lakh towards settlement fee.
It was alleged that Sonata Software made delayed disclosure to the stock exchange about securities traded by its employee, Sebi said in settlement order passed on Wednesday.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%