Capital market regulator Sebi today imposed a penalty of Rs 15 lakh on a former director of Refex Industries for violation of insider trading norms.
In an order, Sebi said Jagdish T Jain -- a former whole time director of Refex Industries -- was associated with the company during the six-month period prior to trading in the scrip that is on July 1, 2, 8 and 9, 2015.
Noting that Jagdish T Jain was an insider of the company, Sebi said he "was in possession of UPSI (unpublished price sensitive information) while executing trade in the scrip of the company" and thereby violated PIT (Prohibition of Insider Trading) Regulations.
For the violation, the regulator has imposed a penalty of Rs 15 lakh on him.
The financial result of Refex Industries for the quarter ending June 30, 2015 was declared on July 10, 2015.
The result of the firm was UPSI from July 1 to July 10, 2015 i.e. till the time it was disclosed by the company on exchange platform.
The Securities and Exchange Board of India (Sebi) had conducted an investigation in the scrip of Refex Industries during the period from July 1 to July 23, 2015.