Insider Trading: Divis Labs individual slapped Rs 11 lakh fine, banned from securities market by SEBI
The watchdog had conducted an investigation into suspected insider trading activities of certain entities in the shares of Divi's Laboratories during the July 7 to 10, 2017 period.;
New Delhi: Sebi on Friday imposed a one-year ban from the securities market and a fine of Rs 11 lakh on an individual for insider trading activities in the shares of Divi's Laboratories in 2017.
Besides, the individual, Srinivas Maddineni, has been directed not to deal in the shares of the company for two years. Also, he has been asked to disgorge wrongful gains of Rs 1.83 lakh along with 12 percent annual interest. The interest would be applicable from July 10, 2017, till the date of actual payment of the disgorgement amount, according to an order. The watchdog had conducted an investigation into suspected insider trading activities of certain entities in the shares of Divi's Laboratories during the July 7-10, 2017 period.
On July 10, 2017, the company had made an announcement during market hours about the US Food and Drug Administration was to lift import alert regarding one of the company's unit in Visakhapatnam.
This was an Unpublished Price Sensitive Information (UPSI) till it was disclosed to the stock exchanges.
The individual had bought 4,000 shares of Divi''s Laboratories on July 10, 2017, and around two-and-a-half hours later, a disclosure regarding the USFDA removing the import alert was made by the company, as per the order.
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