Sebi settles takeover, insider trading violation case with 11 entities

As many as 11 entities today settled a Sebi probe into alleged violations of takeover and insider trading regulations in the matter of Sangam Health Care Products after paying nearly Rs 45 lakh towards settlement charges.

The Sebi agreed to settle proposed adjudication proceedings in the case after it was approached by these entities with a plea under the settlement regulations.

Under the settlement, an entity is allowed to settle charges by paying a penalty without admission or denial of guilt.

The adjudication proceedings were initiated by the regulator against the entities for alleged violations of SAST (Substantial Acquisition of Shares and Takeovers) norms and PIT (Prohibition of Insider Trading) Regulations.

In two settlement orders passed today, Sebi said it has disposed of the adjudication proceedings initiated against the 11 entities.

These entities are -- Padmaja Patil, L S Patil, S S Patil, Nanda Patil, Shailaja Patil, Shobha S Patil, Siddling S Patil, V S Murthy, Saojinidevi Patil, S R Patil and Beckton Dickinson Korea Ltd (formerly known as Boin Medica Company).

Sebi said that 11 entities have collectively paid a total of Rs 26 lakh towards settlement fee, while Padmaja Patil has additionally paid around Rs 19 lakh as settlement charge.

It was alleged, in the show cause notice, that these entities have violated takeover violations. In addition, Padmaja Patil allegedly violated insider trading violation and takeover norms.

During proceedings, the entities had approached Sebi to settle the case on payment of settlement charges.

Thereafter, Sebi's high powered advisory committee recommended the case for settlement on the collective payment of Rs 26 lakh for 11 entities, and in addition about Rs 19 lakh for Padmaja Patil. This was also approved by the regulator's panel of whole-time members, following which they remitted the amount.

Accordingly, the regulator has disposed of the adjudication proceedings initiated against those entities.

However, Sebi noted if any representation made by the entities in the settlement proceedings is subsequently found to be untrue, the regulator would initiate proceedings against them.

Last month, Sebi had settled a case against L S Patil after he paid over Rs 48 lakh for alleged disclosures lapses.