Latest News | Three Persons Pay Rs 4.35 Crore to Sebi to Settle Insider Trading Case

New Delhi, May 27 (PTI) Three persons on Friday settled with markets regulator Sebi a case pertaining to alleged violation of insider trading rules in the shares of Religare Enterprises after paying Rs 4.35 crore cumulatively towards settlement charges.

Those who have settled the case are Siddharth Dinesh Mehta, Dilipkumar V Lakhi and his nephew Manish G Lakhi, the Securities and Exchange Board of India (Sebi) said in two separate settlement orders.

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Individually, Mehta paid Rs 22.31 lakh, Dilipkumar V Lakhi remitted Rs 44.62 lakh and Manish G Lakhi paid Rs 3.68 crore which included Rs 1.87 crore as settlement amount and Rs 1.26 crore as disgorgement along with Rs 55.4 lakh as interest.

The orders came after these persons filed applications with Sebi proposing to settle the alleged violations "without admitting or denying the findings of fact and conclusions of law".

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Through its settlement orders, Sebi said, "pending enforcement proceedings for the alleged default ... are settled qua the applicant".

The regulator further said that it will not initiate any other enforcement action against the applicants for the default.

Sebi had conducted an investigation in the matter to ascertain as to whether certain entities have traded in the scrip of Religare Enterprises Limited (REL) during the period from October, 2017 to May, 2018 on the basis of Unpublished Price Sensitive Information (UPSI).

Based on the findings of the investigation, enforcement proceedings were initiated for the alleged violations of insider trading norms and show-cause notices were issued in July 2021.

As per the SCN, Dilipkumar V Lakhi had frequent communication with Mehta for the purposes of investment in REL as part of its fund raising activities.

It has been alleged that Mehta had access to certain UPSI that Malvinder Mohan Singh and Shivinder Mohan Singh would be stepping down from the board of REL, and therefore, Mehta was alleged to be an "insider".

Further, Mehta was alleged to have communicated the UPSI to Dilipkumar V Lakhi, who in turn communicated the same to Manish G Lakhi.

Also, it was alleged that Manish G Lakhi had indirectly traded in the scrip of REL while in possession of UPSI, while Dilipkumar V Lakhi allegedly placed the order on behalf of his nephew.

Dilipkumar V Lakhi was the authorised signatory for the investment and trading decisions of Manish G Lakhi.

Through such acts, they allegedly violated the insider trading norms, the order noted.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)