Business Standard

Sebi levies fine on Hero MotoCorp's ex compliance officer, his wife for insider trading

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Press Trust of India New Delhi
Markets regulator Sebi on Thursday imposed a total fine of Rs 9 lakh on Hero MotoCorp's former compliance officer and his wife for insider trading in the scrip of the company.
While Ilam C Kamboj was levied a fine of Rs 8 lakh, his wife, Alka Kamboj faced a fine of Rs 1 lakh.
Ilam was employed as the company secretary cum compliance officer of Hero MotoCorp from 1990 to 2016.
The regulator noted that Ilam C Kamboj HUF and Alka Kamboj traded in both long and short positions in Hero MotoCorp's futures and options resulting in a total profit of over Rs 7.41 lakh.
Besides, it was noted that the trades were carried out during the trading window closure period on various instances.
Being designated persons, the Kamboj-couple was required to obtain pre-clearance for trading in the scrip of the company during window closure period but they failed to do so.
Further, they also entered into contra trades within a period of six months and did not report the trades executed by them to the company.
Sebi noted that Ilam C Kamboj was the managing member of the HUF and hence responsible for "ensuring compliance with the code of conduct including that of pre-clearance of trades, following trading window restrictions, not engaging in derivatives transactions, ensuring that no opposite transactions take place within 6 months and reporting of trades."

Accordingly, Ilam C Kamboj and Alka Kamboj have been fined for violating provisions of Prohibition of Insider Trading norms.

Disclaimer: No Business Standard Journalist was involved in creation of this content

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First Published: Sep 26 2019 | 7:40 PM IST

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