Insider Trading: Divis Labs individual slapped Rs 11 lakh fine, banned from securities market by SEBI

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This was an Unpublished Price Sensitive Information (UPSI) till it was disclosed to the stock exchanges.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.

He was an Assistant General Manager in the Environment, Health and Safety Department and a designated person at the company during the UPSI period, Sebi said.

Among others, Sebi said the individual had also failed to make disclosures regarding certain trades during July 10-18, 2017.

Passing the order, Sebi has restrained the individual from "accessing the securities market and further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner, whatsoever, for a period of one year".

Further, he has been prohibited from dealing in the securities of Divi''s Laboratories, directly or indirectly, in any manner for two years.

Also Read: Divi's Labs Profit Up 80.61 Percent To Rs 492.06 Crore In Q1