Individual pays over Rs 60 lakh to settle case of insider trading with Sebi

An individual has settled a case of alleged insider trading in the scrip of Sabero Organics Ltd with markets regulator Sebi by paying a total of over Rs 60 lakh towards settlement charges along with disgorgement of illegal gains.

The regulator carried out an investigation into the suspected trading activity in the shares of the firm between May-June 2011. Sebi noted that Coromandel, after a meeting with the representatives of Sabero Organics, informed the bourses about the acquisition of the latter by it.

The information related to the acquisition was deemed to be a price sensitive information and accordingly, the period between May 15, 2011 to May 30, 2011 was unpublished price-sensitive information (UPSI) period.

Sebi observed that the applicant allegedly traded in the scrip of Sabero during the UPSI period and made a profit of over Rs 13.5 lakh.

The individual, Komal Jaideep Raigagla, was alleged to have violated Prohibition of Insider Trading (PIT) Regulations, the Securities Exchange Board of India (SEBI) said in a settlement order.

Pending the proceedings, Raigagla filed a settlement application with the regulator and proposed to pay Rs 33.46 lakh towards settlement charges along with Rs 13.5 lakh of illegal gains and Rs 13.18 lakh of interest amount.

This amount after the nod from the high powered advisory committee of Sebi was remitted by Raigagla in September 2019.

According to a separate order, an individual, Madhuri Sana has settled a case of alleged disclosure lapses regarding change in her shareholding in Objectone Information Systems after paying Rs 11.81 lakh towards settlement charges.

Sana was alleged to have violated PIT and Substantial Acquisition of Shares and Takeover norms by failing to make disclosure to the exchanges after decrease in her holding in the company.

The proceedings in both the matters have been disposed of by Sebi after the applicants remitted the settlement amount.

However, the regulator has said proceedings in the matters may be restored if representations made by the applicants are subsequently found to be untrue.