Sebi imposes Rs 5 lakh fine on an individual

Market regulator Sebi today slapped a fine of Rs 5 lakh on one Gurmeet Singh Dhingra for allegedly not making shareholding disclosures within the stipulated timeline.
The Securities and Exchange Board of India (Sebi) in its order has imposed "a penalty of Rs 5 lakh on Gurmeet Singh Dhingra...The penalty is commensurate with the default committed by the noticee (Dhingra)."
According to regulator, Dhingra, who was holding 8,29,900 shares of Trinity League India (formerly known as Dr Wellmans Homeopathic Laboratory Ltd) constituting 16.37 per cent stake in the company, picked up 2.49 lakh scrips on September 28, 2009.
Following the acquisition, his stake increased to 21.30 per cent which required him to make the disclosures.

Further, Dhingra had sold shares of Trinity League India on four occasions i.E. On December 30, 2009, January 5, 2010, January 8, 2010 and January 23, 2010 which resulted in a decrease in his holding by over two per cent on all the four occasions which again required him to make necessary disclosures.
These disclosures were required to be made under Sebi (Prohibition of Insider Trading) Regulations.

Dhingra in his submissions to Sebi has not made any mention of making the these disclosures and has only stated that the company -Dr Wellmans Homeopathic Laboratory Ltd- has settled the delayed compliance with respect to disclosure requirement as prescribed PIT regulations under the consent scheme of Sebi.

"I conclude that the noticee was required to make the necessary disclosures upon acquisition and sale of shares of TLIL as required under PIT Regulations which he failed to make and therefore, is liable for imposition monetary penalty," Sebi Adjudicating Officer D Sura Reddy said.
Currently, Dhingra is not holding any shares of TLIL as on date and has sold all his holdings in the company.