GIC settles insider trading case with Sebi, pays Rs 1.23 cr as remittance

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General Insurance Corporation of India(GIC) has settled with regulator Sebi a case of alleged violation of insider trading norms by paying over Rs 1.23 crore towards settlement charges.

The markets watchdog had conducted an investigation in the scrip of Axis Bank and observed that state-owned GIC had delayed in making disclosures with respect to change in its shareholding in the private lender as required under Prohibition of Insider Trading norms.

However, before proceeding further and initiating proceedings, Sebi sent a notice of settlement to the reinsurer in October 2019 intimating that proceedings may be settled and disposed of upon filing of a settlement application along with remittance of over Rs 1.23 crore.

In reply, GIC filed a settlement application with the regulator "without admitting or denying the findings of fact and conclusions of law, proposing to settle the defaults" and remitted the settlement amount.

Accordingly, the Securities and Exchange Board of India (Sebi) in an order dated December 12 said "the proposed proceedings that could have been initiated for the defaults .... are settled qua the applicant."

It further said if any representation made by GIC in the present settlement proceedings is subsequently discovered to be untrue, Sebi could take actions against it.