Sebi fines Biocon, its designated person for violating market norms

Markets regulator Sebi on Wednesday imposed a total fine of Rs 14 lakh on Biocon Ltd and its designated person for violation of market norms.

Designated person of the firm, Narendra Chirmule, who was employed with the company as senior vice president-R&D is facing a fine of Rs 5 lakh for trading in the company's securities when the trading window was closed.

By doing so, he violated provisions of Prohibition of Insider Trading (PIT) norms.

Sebi noted that the trading window was closed by the compliance officer of Biocon from January 1-26, 2019 on account of declaration of quarterly financial results of the company for the quarter ended December 31, 2018, which were announced on January 24, 2019.

In accordance with market norms, the company has to notify the particulars of the trading details of the promoter / member of the promoter group /designated person /director, if the value of the securities traded is in excess of Rs 10 lakh, to the stock exchange within 2 trading days of receipt of the disclosure or from becoming aware of such information.

However, Biocon had informed the bourses after a delay of 262 days.

In addition, market norms require that violation of code of conduct (CoC) be informed to the regulator "promptly."

Biocon informed Sebi after 28 days of becoming aware of violation of company's code of conduct.

In violation of norms, the company did not define the deadline for informing the violation of PIT Regulations.

"It is noted that the company had failed to prescribe any deadline within which it is required to inform Sebi of the violation of CoC," the regulator said.

The information which was made belatedly by the company cannot be construed to be a reasonable period, it added.

Consequently, Biocon is facing a total penalty of Rs 9 lakh for violating various provisions of PIT norms.