New India Assurance settles insider trading norms violation case with Sebi

State-owned New India Assurance Company Ltd has settled with markets regulator Sebi a case of alleged violation of insider trading norms by paying over Rs 62 lakh towards the settlement charges.

The move comes after the insurer filed an application proposing to settle, without admitting "the findings of fact and conclusions of law", the case of delayed compliance with insider trading regulation in respect of change in its shareholding in Axis Bank through a settlement order.

During the May-September 2018 period, it was observed that the value of securities traded by the insurer, one of the bank's promoters, on certain trading days was more than Rs 10 lakh, Sebi said.

In this regard, the applicant was required to make disclosures to the company, within two trading days from the date of the transaction under the PIT (Prohibition of Insider Trading) Regulations. However, it did not make the disclosures within the required time, thus violating the PIT Regulations, Sebi noted.

After a meeting of Sebi's internal committee in December 2019, New India Assurance paid settlement amount of Rs 62.68 lakh to settle the case through settlement procedure.

Consequently, Sebi in a settlement order passed on Thursday said, "The proceedings that may be initiated for the default...are settled."

Sebi further said it will not initiate any enforcement action against the company for the default.