Individual pays Rs 11.92 lakh to settle Sebi case in disclosure lapses case

Accordingly, Sebi served a show cause notice to Chhatwal in May 2022 for the alleged violations.Following this, Chhatwal filed the settlement application with Sebi and proposed to settle the alleged violations on payment of Rs 11.92 lakh as settlement.

An individual has settled a case with market regulator Sebi in a matter related to alleged non-disclosure of share acquisitions details on payment of Rs 11.92 lakh towards the settlement amount.

The matter has been settled by Nitan Chhatwal through a settlement order ''without admitting or denying the findings of fact''.

''It is hereby ordered that the instant adjudication proceedings initiated against the noticee (Chhatwal) vide SCN (show cause notice) dated May 31, 2022, is disposed of,'' the Securities and Exchange Board of India (Sebi) said in its settlement order on Wednesday.

The regulator conducted an investigation into the trading activities of certain entities in the scrip of Surabhi Chemicals and Investments Ltd (now known as Superspace Infrastructure Ltd) for the period August 2012 to January 2015. The focus of the investigation was to examine whether there were any disclosure violations under PIT (Prohibition of Insider Trading) rules and SAST (Substantial Acquisition of Shares and Takeovers) norms. Pursuant to the investigation, it was observed that Chhatwal had allegedly not made any disclosures to date with respect to the acquisition of his shares and violated the provisions of SAST and insider trading rules. Accordingly, Sebi served a show cause notice to Chhatwal in May 2022 for the alleged violations.

Following this, Chhatwal filed the settlement application with Sebi and proposed to settle the alleged violations on payment of Rs 11.92 lakh as settlement. The amount was approved by the regulator. Accordingly, he remitted the amount and settled the case.

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