New Delhi, Jul 29 (PTI) Four entities, including Infibeam Avenues' two senior officials and its promoter group firm Infinium Motors (Gujarat) Ltd, have settled an alleged insider trading case with markets regulator Sebi after paying Rs 2.9 crore collectively.
Those who settled the case are -- Infinium Motors (Gujarat) Ltd or IMGPL, Infibeam Avenues' Managing Director Vishal Mehta and his brother Malav Mehta, who is also a director at IMGPL, and the company's Chief Financial Officer Hiren Padhya, according to Sebi orders.
In three separate settlement orders, Sebi said "the pending enforcement proceedings for the alleged default ...are settled qua the applicants."
The orders come after the four applicants filed settlement application with Sebi proposing to settle the case "without admitting or denying the findings of fact and conclusions of law, through a settlement order."
The case pertains to alleged violation of insider trading norms in the case of Infibeam Avenues Ltd (IAL).
In June, 2017 Infibeam Avenues made a corporate announcement on the platform of the stock exchanges that a meeting of the board of directors was to be held on July 13, 2017 to consider and approve sub-division / split of equity shares of the company and Infibeam Stock Appreciation Rights Scheme, 2017.
Vishal Mehta was alleged to be in possession of the unpublished price sensitive information (UPSI) pertaining to split of equity shares and Infibeam Stock Appreciation Rights Scheme.
He communicated the same to his brother Malav Mehta, who traded in the scrip of IAL on behalf of IMGPL, Sebi said in its orders.
IMGPL, a promoter group entity of IAL, was alleged to have purchased 2,82,134 shares of IAL during the UPSI period and made notional gains of Rs 97.36 lakh.
It was alleged that Padhya violated insider trading rules and clause related to minimums standards for code of conduct to regulate, monitor and report trading by insiders.
"Padhya, chief financial officer of IAL, is alleged to have executed only sale transactions in the scrip of IAL during the UPSI period. There were no buy transactions executed by him prior to UPSI, during UPSI and post UPSI period," Sebi noted.
Accordingly, proceedings were initiated against the four applicants. Pending enforcement proceedings initiated against the applicants for alleged violation, they had approached Sebi to settle the case.
After this, the regulator recommended the case for settlement upon payment of settlement charges.
Following this, IMGPL paid Rs 1.49 crore as settlement amount, including disgorgement of Rs 97.36 lakh as ill-gotten gains along with interest of Rs 44.30 lakh; Vishal Mehta and Malav Mehta paid Rs 66.93 lakh each and Padhya paid Rs 14.87 lakh.
In a separate order on Thursday, Sebi imposed a penalty of Rs 50 lakh Kaynet Finance for failing to perform its duties as a stock broker.
The penalty was levied for mis-utilisation of clients' funds and securities; non-submission of data; non-maintenance of books of accounts; non-settlement of funds and securities and incorrect reporting of data to the exchange, among others.
Through a separate order, Sebi has disposed of the adjudication proceedings initiated against Dewan Housing Finance Corporation Ltd (DHFL) in the matter of certain transaction of shares by the company.
"The present proceedings cannot be continued against the noticee, since the resolution plan in respect of the noticee (DHFL) has already been approved by the Hon'ble NCLT, vide order dated June 07, 2021, under ... IBC," Sebi said.
Sebi conducted an investigation during February-March 2017 pertaining to transaction of the shares by DHFL in DHFL Pramerica Life Insurance (erstwhile DLF Pramerica Life Insurance Company) with its wholly-owned subsidiary DHFL Investments Ltd and other related transactions to ascertain the violation of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules.
It was alleged that DHFL did not comply with the provisions of Sebi's LODR (Listing Obligations and Disclosure Requirements) Regulations.
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