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Market regulator Sebi today slapped Rs 5.5 crore fine on Shelter Infra Projects Ltd (SIPL) and 11 entities for allegedly violating insider trading norms.
The company has been fined for its failure to close the trading window from the day a proposal of change of management of SIPL for the execution of 'Shares Purchase Agreement' was placed before the board.
Besides, 11 entities have been penalised for trading in SIPL's share while in possession of 'price sensitive unpublished information' related to the company's 'Shares Purchase Agreement'or passing the same information to others.
Generally, a company specifies a trading period, to be called 'trading window' during which time the employees and directors would be allowed to deal in securities of their respective firms.
Sebi, in four separate orders, has imposed Rs 1 crore penalty each on Shelter Infra Projects, the company's erstwhile chairman and promoter Chirantan Mukherji's wife Chandra and its' former director Shanti Ranjan Paul.
Also Sebi slapped a total of Rs 2 crore fine on seven Parekh Group entities. Further, the regulator imposed Rs 30 lakh fine Sisir Kumar Saha, a former director of SIPL, and another Rs 20 lakh on his son Soura Sekhar Saha.
According to Sebi, these entities have been penalised for violation of provisions of Prohibition of Insider Trading (PIT) Regulation.
"The noticee (SIPL) itself has admitted that the trading window was not closed during the requisite time and I find that it is during this period that certain entities had traded on the basis of the UPSI (unpublished price sensitive information) in violation of PIT (Prohibition of Insider Trading) Regulations," Sebi Adjudicating Officer D Sura Reddy said in its order.
SIPL's board had approved a 'Shares Purchase Agreement' at its meeting held on July 30, 2009 to be executed between SIPL and the proposed acquirers, Ramayana Promoters Pvt Ltd, on July 31, 2009 for the sale of 12.67 lakh shares or 35.50 per cent stake, held by the erstwhile promoters, as also change in management of the company.
These shares were offered at Rs 80 apiece.
The 'Shares Purchase Agreement' was signed on July 31, 2009 and on August 7, 2009 the managers to the offer on behalf of the acquirer issued a public announcement to the equity shareholders of SIPL.
