Sebi levies Rs 18 lakh fine on 2 promoters of Oasis Tradelink for violating insider trading norms

Sebi has imposed a penalty totalling Rs 18 lakh on two promoter entities of Oasis Tradelink Ltd (OTL) for violating insider trading norms.

The entities also failed to comply with the summons issued by the regulator.

In two separate orders, Sebi levied a fine of Rs 10 lakh on Mrubhee Stockholdings and Rs 8 lakh onMrudula Bhikhubhai Patel.

The regulator had conducted an investigation in the scrip of OTL during January- March 2018.

During the investigation, Sebi found that Mrubhee Stockholdings and Patel failed to disclose their on-market transactions of more than Rs 10 lakh value on three occasions to the company and exchange, while they also didn't disclose off-market transactions of more than 10 lakh value on two occasions.

"This is a case of complete failure on the part of the noticee who is a promoter," Sebi said in similary worded orders passed on Monday.

By doing so, they violated the PIT (Prohibition of Insider Trading) Regulations.

Further, they did not comply with the summons issued to them.

"The non-compliance of the summons issued to it by the IA (investigating agency) during the investigation shows its lackadaisical approach towards the regulator," Sebi noted.

Separately, the regulator imposed a penalty of Rs 5 lakh on stock broker Ambalal Shares and Stocks Pvt Ltd for misutilisation of credit balance clients' funds to meet obligations of debit balance clients, thereby violating the SCRA (Securities Contracts Regulation Act) norms.

The regulator found that there was excess withdrawal from client's account to the tune of Rs 1.6 crore during the financial year 2017-18 by Ambalal Shares and Stocks.