Biocon employee penalized by SEBI for violating insider trading norms

Biocon's employee Girija Kelath violated the Prohibition of Insider Trading (PIT) Regulations by trading in the shares of Biocon during the trading window closure period, which is specifically prohibited.

The order follows an investigation carried out by Sebi to ascertain if there was any violation of PIT norms by Girija Kelath, a designated person of Biocon, with respect to her transactions during August 31, 2018, to October 1, 2018.

The company had closed the trading window from October 1, 2018, till October 27, 2018. The compliance officer of Biocon had also intimated the designated employees, including Kelath, on September 28, 2018, about the start date and end date of trading window closure as well as the date of opening of the trading window.

"It is noted that the notice, being a designated person, had traded during the trading window closure period which is specifically prohibited. The notice is found to have sold 15,000 shares worth Rs. 1,00,50,000/- on the market on October 01, 2018," Sebi noted.

Notices refer to Girija Kelath.

Even when the trading window is open, a designated person is supposed to obtain pre-clearance of the trade from the compliance officer if the designated person's trade, cumulatively, whether in one transaction or a series of transactions, in any financial year, exceeds Rs 10 lakh (market value).

In a separate order, Sebi imposed a fine of Rs 2 lakh on for making delayed disclosure with respect to change in its shareholding in Sun and Shine Worldwide Ltd.

Shareholding of Saral Mining, formerly known as XO Infotech Ltd, in Sun and Shine Worldwide changed by more than 2 per cent on two occasions in May 2014. It also failed to make requisite disclosures to the company and the exchanges within the prescribed time frame, thereby violating market norms.

Through another order, the markets regulator penalized Samarth International Finlease Ltd with a fine of Rs 2 lakh for failing to redress investor grievances pending against it. It also did not submit action taken report with respect to the pending grievances within the prescribed period of time, as mandated by Sebi''s circulars.

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