Sebi slaps Rs 1.1 mn fine on 4 entities for violating insider trading norms

Sebi has levied a fine on Kisan Mouldings, Surinder Jagannath Aggarwal and Polsons Traders LLP and Surinder Jagannath Aggarwal HUF

Markets regulator Sebi on Tuesday imposed a total penalty of Rs 1.1 million on four entities for violating insider trading norms.

The Securities and Exchange Board of India (Sebi) has levied a fine of Rs 400,000 on Kisan Mouldings, Rs 250,000 each on Surinder Jagannath Aggarwal and Polsons Traders LLP and Rs 200,000 on Surinder Jagannath Aggarwal HUF.

The regulator conducted an examination in the scrip of Kisan Mouldings and found that Aggarwal and HUF, who were promoters of the company in the relevant period, sold their shares in the firm during the period April 2016 to May 2017. However, they failed to make disclosures to the company.

Besides, it noted that Kisan Mouldings made a preferential allotment of 1.17 million shares to Polsons, a promoter of the firm, in April, 2016. However, Kisan Mouldings did not make the disclosure to the stock exchanges in this regard, while Polsons did not inform the firm about the allotment.

By not making such disclosures, the four entities violated PIT (Prohibition of Insider Trading) Regulations and accordingly the regulator has slapped fine on them.