Sebi penalises individuals for insider trading norm violations in MindTree shares

This was to ascertain whether there was any violation of Prohibition of Insider Trading PIT regulations.The probe revealed that Samir Mankar and Boopathi Palanivelu, who were employees of the company, had transacted in the companys shares during the investigation period but failed to make requisite disclosures.

Markets regulator Sebi on Tuesday penalised two individuals for violating insider trading norms after failing to make requisite disclosures regarding certain trades in the shares of MindTree Ltd.

The watchdog had conducted an investigation into the shares of the company during the period from January 1, 2019 to March 31, 2019. This was to ascertain whether there was any violation of Prohibition of Insider Trading (PIT) regulations.

The probe revealed that Samir Mankar and Boopathi Palanivelu, who were employees of the company, had transacted in the company's shares during the investigation period but failed to make requisite disclosures. A fine of Rs 1 lakh has been imposed on the individual, according to two separate orders.

In a separate order, Sebi imposed a fine of Rs 3 lakh on three individuals for insider trading activities in the shares of Mohota Industries Ltd, formerly known as Rai Saheb Rekhchand Mohota Spg. & Wvg. Mills Ltd.

Veenadevi Vinodkumar Mohota, Kiran Bhagat and Vinod Kumar Mohota (noticees) have been slapped with a fine of Rs 1 lakh each.

Sebi had investigated the shares of the company for the period July 28, 2015 to August 30, 2016. It was observed that the individuals had traded in the shares when they were in possession of Unpublished Price Sensitive Information (UPSI) relating to the financial results of the company pertaining to the period ending on March 31, 2016. The results were declared on May 30, 2016.

Besides, the individuals had decided to trade certain number of shares from July 28, 2015 to July 31, 2016 and pursuant to the trading plan, they had traded during a period prohibited under the PIT (Prohibition of Insider Trading) Regulations.