Capital markets regulator Sebi today imposed Rs 14 lakh fine on two directors of Indsil Hydro Power and Manganese for violating disclosure norms.
In two separate orders, the Securities and Exchange Board of India has imposed a penalty of Rs 12 lakh on Vinod Narsiman and Rs 2 lakh on S N Vardarajan.
As per Sebi norms on 'Prohibition of Insider Trading (PIT)', as directors of a listed company they were required to disclose to the firm any change in their shareholding.
Noting that they failed to make the necessary disclosures to the company as required under the PIT Regulations, Sebi said that the two were "thus, liable for monetary penalty".
Sebi found that Narsiman held 6.91 lakh shares (7.32 per cent stake) of Indsil Hydro Power and Manganese and had transacted in shares of the company which changed his shareholding on five occasions in 2003.
In the case of Vardarajan it was observed that he was in possession of 7.08 lakh shares (7.49 per cent stake) of the company and on April 21, 2003 had sold 58,500 shares which decreased his shareholding to 6.88 per cent.
