Sebi imposed Rs 12 lakh fine on a man for violating insider trading restrictions in the case of Parag Milk Foods (Parag) on Friday. The person identifies as Shashi Kant Dalmia, the regulatory body ordered him to pay the amount within 45 days.
The order came after Sebi undertook an inquiry from January to April 2018 to determine whether any firm had breached the requirements of (Prohibition of Insider Trading) laws while trading in Parag.
Dalmia was deemed to be a designated employee or an insider of Parag and so performed transactions while in knowledge of unpublished price-sensitive information (UPSI), thereby violating PIT requirements.
It was also discovered that, despite being a designated person of Parag, he had dealt in the firm’s shares with a threshold value surpassing Rs 5 lakh without seeking pre-clearance from the firm’s compliance officer.
According to the guidelines, any authorised person/employee conducting a trade in any scrip with a threshold value of more than Rs 5 lakh must acquire pre-clearance from the company’s compliance officer before executing the deal.
As a result, Dalmia violated the Minimum Standards of Code of Conduct of PIT rules by failing to take reasonable care and attention when dealing with the scrip of Parag.