Four entities are likely to bear a fine of ₹17 lakh imposed by Market Regulator, SEBI, for breaching market norms.
The Securities and Exchange Board of India on Friday imposed a hefty penalty on four entities inclusive of director and promoter of Pithampur Steels for carrying out trade activities off the market.
According to SEBI, the entities didn’t follow Prohibition of Insider Trading. Market Regulator also claimed that the director and promoter of Pithampur Steels did not disclose the change in shareholding of the company. The fine imposed after conducting an investigation from April to September 2010.
Among the defaulters were Nitin Yard Securities along with Nitin Sharma, Highlight Leafin Pvt. Ltd. and two investment advisors, reported TOI.
Why SEBI imposed a fine?
- Sebi’s investigation revealed that Yard Securities gave away 1,25000 shares without the acknowledgement of receipt in return.
- The off-market transaction of 25000 shares with Nitin Sharma and 1lakh shares with Highlight Leafin Pvt. Ltd. was conducted in 2010
- According to SEBI, This act is an offence as carrying out any transaction outside market regulation is not acceptable under the Securities And Contract Regulation Act.
- Further, The regulator was not involved when director Sachin Sharma received 87,200 shares.
- A notification was required when the shareholding of Yard Securities was changed by 2% owing to the transfer of share.