Markets regulator Sebi has imposed a penalty of Rs 9 lakh on ING Vysya Bank's former official for violating insider trading regulations.
The fine was levied on Vinay Agrawal, who was regional head of business banking in ING from August 2011 till June 20, 2012. Later, he held the position of zonal head of cluster business banking till October 10, 2013.
The Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against Agrawal, who was alleged to have not complied with PIT (Prohibition of Insider Trading) Regulations.
After conducting an examination of trading in the shares of ING Vysya Bank from August 2011 to May 2013, Sebi found that Agrawal traded in the shares valuing over Rs 5 lakh four times.
Upon buying and selling the shares of ING lead to change in the shareholding for more than Rs 5 lakh in value on January 17-18, 2012 and May 2-3, 2013.
According to the PIT regulations, he was required to make disclosures about these transactions to ING and to BSE within two working days from the date of such dealing. However, he failed to make the disclosure.
"I conclude that the noticee has violated the provisions of ...PIT Regulation," Sebi Adjudicating Officer Suresh Gupta said in an order dated September 21.
Besides, Sebi said that Agrawal had entered into opposite transactions on three occasions.
"Upon entering into opposite transactions on three occasions... I conclude that the noticee has acted in violation of ... of the model code of conduct... of PIT Regulations," Gupta added.
Accordingly, a fine totalling Rs 9 lakh was levied on Agrawal.
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