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Sebi levies fine on Biocon employee for violating insider trading norms

Accordingly, Sebi imposed a consolidated fine of Rs 3 lakh on Singh for both the violations -- not obtaining pre-clearance and making delayed disclosures

Sebi | Insider Trading | Biocon

Press Trust of India  |  New Delhi 


regulator on Friday levied a fine on an employee of Ltd for violating norms while dealing in the scrip of the firm.

The employee, Vandana Singh (noticee), general manager regulatory affair of at the time of investigation and also a designated person, is facing a fine of Rs 3 lakh for violating provisions of Prohibition of (PIT) norms.

An investigation carried out by the regulator found that Singh, who held 9,550 shares of the company, acquired through exercise of employee stock option plan (ESOP), sold 3,550 shares between May 2018 to September 2018 without seeking pre-clearance from the compliance officer.

"The noticee by not obtaining pre-clearance from the compliance officer of for the transactions in question has violated the provisions of...PIT Regulations," said.

In addition, Singh also delayed making requisite disclosures.

In terms of PIT Regulations, every promoter, employee and director of every company shall disclose to the company the number of securities acquired or disposed of within two trading days of the transaction if the value of the securities traded crosses a certain threshold.

In the instant case, Singh's transactions exceeded the value of Rs 10 lakh on two occasions and were required to be disclosed within two days, but she failed to do so.

Accordingly, imposed a consolidated fine of Rs 3 lakh on Singh for both the violations -- not obtaining pre-clearance and making delayed disclosures.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Fri, October 23 2020. 19:11 IST