The Securities and Exchange Board of India (Sebi) had conducted an investigation in the scrip of Atlanta Devicon, formerly known as Seax Global Ventures for the period between June 2009 to December 2009.
During the probe, it was revealed that Shiraj K, who was one of the promoters, had resigned from the board of directors of the firm on October 6, 2009 and was freshly re-appointed as the chairman/managing director/director of the company on November 16, 2009.
The individual was holding 4,02,531 shares of Seax Global Ventures at the time of his re-appointment and under Prohibition of Insider Trading (PIT) Regulations, he was required to make disclosure of the number of shares of the firm held within two working days of re-joining.
"I have noted that since the noticee (Shiraj K) became a fresh chairman / managing director / director of the company, therefore, he was required to make disclosures to the company about his shareholding in terms of... PIT Regulations, which he has failed to do so as he has not provided any proof of making disclosure upon re-appointment," Sebi Adjudicating Officer Rachna Anand said in an order.
Anand, who is also Sebi General Managar, noted that the individual failed to make the disclosure upon his re- appointment as chairman/managing director/director on November 16, 2009 and violated the PIT regulations.