Sebi fines two Mahindras staff for insider trading
8 Aug 2014 11:27 PM GMT
Incidentally, the probe was initiated after Mahindra & Mahindra itself informed Sebi about the violations by the two employees.
In two separate orders, the Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs 2 lakh on Gopalan Murali and Rs 4 lakh on Pavan Kumar Sodani — both designated employees of Mahindra & Mahindra — for violation of 'prohibition of insider trading' regulations.
The regulator found that Murali and Sodani had dealt in the shares of Mahindra & Mahindra when the trading window was closed for declaration of unaudited financial results of the company for the quarter ended on 31 December, 2012.
It also observed that both had traded in the scrip for more than Rs 5 lakh in value and entered into opposite transactions within 6 months following the prior transaction. As per Sebi norms, opposite transaction refer to selling or buying any number of shares during the next 6 months following the prior transaction.
In two separate orders, the Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs 2 lakh on Gopalan Murali and Rs 4 lakh on Pavan Kumar Sodani — both designated employees of Mahindra & Mahindra — for violation of 'prohibition of insider trading' regulations.
The regulator found that Murali and Sodani had dealt in the shares of Mahindra & Mahindra when the trading window was closed for declaration of unaudited financial results of the company for the quarter ended on 31 December, 2012.
It also observed that both had traded in the scrip for more than Rs 5 lakh in value and entered into opposite transactions within 6 months following the prior transaction. As per Sebi norms, opposite transaction refer to selling or buying any number of shares during the next 6 months following the prior transaction.
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