Latest News | Videocon Case: Sebi Slaps Rs 75 Lakh Fine on Venugopal Dhoot, Two Entities
Get latest articles and stories on Latest News at LatestLY. Markets regulator Sebi on Tuesday imposed fines totalling Rs 75 lakh on industrialist Venugopal Dhoot and two other entities for insider trading activities in the shares of Videocon Industries.
New Delhi, Sep 28 (PTI) Markets regulator Sebi on Tuesday imposed fines totalling Rs 75 lakh on industrialist Venugopal Dhoot and two other entities for insider trading activities in the shares of Videocon Industries.
Besides Dhoot, who was the managing director of the company, the watchdog has slapped penalties on the company's two promoters -- Videocon Realty and Infrastructures Ltd and Electroparts (India) Pvt Ltd. Electroparts was earlier known as Shree Dhoot Trading and Agencies.
The violations of insider trading norms happened in 2017.
"Noticees being insiders had executed off market transactions while in possession of Unpublished Price Sensitive Information (UPSI)," Sebi said.
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Investigation in the scrip of Videocon was carried out between April-September 2017.
The information with respect to classification of Videocon's loan account as NPA by Dena Bank was likely to materially affect the price of Videocon Industries and it was considered as UPSI.
The period of UPSI was March 1, 2017 to May 9, 2017.
The two promoter entities had either pledged their shares or transferred their shares of Videocon Industries to other entities during UPSI period. The authorised representative, Venugopal Dhoot was an insider and traded on behalf of the two promoter companies who were also insiders during the UPSI period.
For violation of market norms, they are facing a fine of Rs 25 lakh each. PTI SRS
(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)