 "Sebi imposes fine on Titan's employee for insider trading norms violation")
Markets regulator Sebi on Wednesday imposed a fine on an employee of Titan Company Ltd for violation of insider trading norms.
The order came after a probe conducted by Sebi between April 2018 and March 2019.
The regulator had received a letter from Titan wherein the company intimated about violation of Prevention of Insider Trading (PIT) regulations and the company's code of conduct for the prevention of insider trading by some of its designated persons/employees.
Subsequently, the regulator conducted an investigation in the scrip of Titan and observed several non-compliances with PIT Regulations during the period April 2018-March 2019 by employees and designated persons including one Patil Basavaraj Mallikarjun.
"Noticee, being an employee of the company, was required to make disclosures to Titan, for each of the aforesaid transactions within two (2) working days," Sebi said. However, there is no evidence to show that he made any such disclosures, Sebi added.
While in employment of Titan, Mallikarjun had transacted in securities of Titan on two occasions in April and May 2018.
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The cumulative values of trades on both the occasions exceeded Rs 10 lakh, thereby necessitating disclosure of such transactions in terms of PIT norms.
However, he failed to do so and violated PIT norms on two occasions.
Therefore, Sebi has levied a fine of Rs 1 lakh on him.
Separately, Sebi imposed fine of Rs 5 lakh each on Shukla Packging Industries Pvt Ltd, Surendra Kumar Gupta HUF and Balbhadra Trading Pvt Ltd for fraudulent and manipulative trading in illiquid stock options segment on the BSE.
The fraudulent trades conducted by the entities are in violation of provisions of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) norms, Sebi noted in separate orders.