Market regulator SEBI has penalized a person for failure to comply with disclosure requirements while dealing with shares of ITC Limited.
There was an inquiry by the regulator into the dividend of ITC from April to December 2018.
During the investigation, SEBI found that Victor Peter Christopher (notice) is an employee of ITC since January 2, 2012, as ‘manager-loss prevention’ with its hotel divisions and ITC allotted employee stock options to Victor.
For this, he had exercised his options and was allotted 15,970 shares by ITC on September 24, 2018, and subsequently, he sold these shares.
The value of the sale of shares of ITC is more than Rs 10 lakh. Therefore, it was required to be disclosed under the Insider Trading (PIT) norms to prohibit it, but they made delayed disclosures.
Sebi also traded in ITC’s dividend in the derivatives segment and there were a total of 18 instances in which it failed to disclose details of its transactions on time and subsequent disclosures, Sebi noted.
As a result, according to an order given on Thursday, he has been fined Rs 1 lakh.
While imposing the fine, Sebi assistant officer Prashant Mahapatra said, “I note that on two separate occasions the notice to the retired officer from the Indian Army, being the recipient of the Army Medal and the Shaurya Chakra, was already very sad Has suffered. For his ignorance of the law. “
He added, “Therefore, I am of the view that the said penalty is commendable in the facts and circumstances of the present case with infringement on the part of the notice.”
In a separate order passed on Thursday, the sentinel settled a case against ITC Limited and its compliance officer – Rajendra Singhi.
Matters relating to the disclosure of delays in connection with the share sale transaction made by Victor.
It was alleged that Singhi was ITC’s compliance officer at the relevant time, failing to monitor Victor’s business and ensure compliance with the provisions of PIT Regulations.
SEBI’s investigation found that ITC has taken swift action after finding out about the delay in disclosure of the sales transaction and imposing a fine of Rs 4.82 lakh on the said employee lodged by Victor in the derivatives segment.
Therefore, no case has been made against the company as well as Singhi, the regulator said.
Accordingly, SEBI settled the case against him.