Unimode Overseas has settled a case related to alleged violation of insider trading norms with markets regulator Sebi after payment of Rs 2 lakh as settlement charges.
"The adjudication proceedings proposed to be initiated against the applicant ... Are settled," Securities and Exchange Board of India (Sebi) said in a settlement order.
The adjudication proceedings proposed to be commenced against Unimode were related to alleged failure on the part of the firm to make disclosure under Sebi (Prohibition of Insider Trading) Regulations for the transaction dated October 28, 2014.
Unimode filed an application proposing to settle the proceedings, "without admitting or denying the findings of fact and conclusions of law", through a settlement order.
The settlement terms proposed by Unimode were considered by Sebi's High Powered Advisory Committee (HPAC), which then recommended the case for settlement on payment of Rs 2 lakh by the firm. The recommendation of HPAC was also accepted by the panel of whole time members of Sebi.
Last month, the company paid settlement amount of Rs 2 lakh. Accordingly, Sebi has disposed of the adjudication proceedings.
However, Sebi said that if any representation made by Unimode in the settlement proceedings is subsequently discovered to be untrue, enforcement actions including commencing proceedings, can be initiated against it.
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