Sebi settles case with individual in IndoStar Capital case

Markets regulator Sebi has settled a case of disclosure lapses by an individual after paying more than Rs 2 lakh towards settlement charges in the matter of IndoStar Capital Finance Ltd.

In an order, the regulator said during the probe it 'prima-facie' found that "Prashant Shetty had sold 15,000 shares of IndoStar during June 15, 2018 to June 19, 2018".

As the traded value exceeded Rs 10 lakh, Shetty was required to make disclosures under PIT (Prohibition of Insider Trading) norms. However, the disclosures were made with delay, Sebi said.

Before initiating with proceedings, Sebi issued notice intimating Shetty that the default can be settled and disposed of under settlement mechanism with payment of Rs 2.04 lakh, the regulator said.

Accordingly, Shetty without admission and without denial of the guilt paid Rs 2.04 lakh under the settlement mechanism, the regulator noted.

"The Securities and Exchange Board Of India (Sebi) shall not initiate any enforcement action against Prashant Shetty" for the default, the regulator said in January 11 order.

Under the PIT norms, every promoter, employee and director of every company needs to disclose to the company, the number of securities acquired or disposed within two days, if the value of the securities traded exceeds Rs 10 lakh.