Tricom Fruit matter: Sebi slaps Rs 38L fine on 2 individuals

Markets regulator Sebi today imposed a total penalty of Rs 38 lakh on two individuals for violating insider trading norms with regard to transactions in the shares of Tricom Fruit Products Ltd (TFPL).
The regulator has slapped a fine of Rs 23 lakh on TFPL's promoter and managing director Chetan Kothari and Rs 15 lakh on his wife Chetana Kothari for violating PIT (Prohibition of Insider Trading) Regulations.
According to a Sebi order, Chetan Kothari and Chetana Kothari had sold 15,400 and 55,879 shares of TFPL on August 13, 2012 while in possession of unpublished price sensitive information (UPSI) regarding the financial results of the firm for the quarter ended June 2012.

Noting that both the individuals are "insiders", Sebi said that they had traded in the shares of the company "when in possession" of UPSI and violated PIT Regulations.
As per the order, Chetan Kothari's transaction of 15,400 shares was also during the window closure period (i.e. between August 12, 2012 to August 16, 2012) for declaration of financial results on August 14, 2012.
PIT Regulations prohibit "directors/ officers/ designated employees" of a company from dealing in any transaction involving purchase or sale of the firm's securities during the periods when the trading window is closed.
Chetan Kothari (being the promoter and managing director of TFPL) by selling the shares of the company during the window closure period has violated PIT Regulations, Sebi said.

For the violations, the Securiies and Exchange Board of India (Sebi) has imposed a penalty of Rs 23 lakh on Chetan Kothari and RS 15 lakh on his wife.