The Securities and Exchange Board of India (Sebi) has settled an insider trading case involving three individuals, with the trio collectively paying Rs1.56 crore. This resolution pertains to alleged violations related to trading in the stock of PNB Housing Finance Ltd.
On Tuesday, the three individuals resolved the charges by paying the agreed settlement amount. Each of the three paid Rs50.7 lakh, while Ronak Narendra Parikh made a separate payment of Rs45.5 lakh as a settlement charge, and an additional Rs8.98 lakh towards disgorgement of wrongful gains, inclusive of interest.
Sebi’s decision to settle the case follows the acceptance of the settlement terms proposed by the individuals. The settlement was executed without the parties admitting or denying the allegations. According to Sebi officials, the adjudication proceedings initiated against the individuals have been concluded following this payment. The case had been initiated after Sebi issued show cause notices to the individuals, accusing them of communicating Unpublished Price Sensitive Information (UPSI) related to PNB Housing Finance. These notices sought explanations as to why an inquiry should not be conducted and why penalties should not be imposed for the alleged violations of the Prohibition of Insider Trading (PIT) rules.
The regulatory body’s move to settle the case underscores its ongoing efforts to uphold market integrity and deter insider trading practices. By facilitating a financial settlement, Sebi aims to address the violations while allowing the involved parties to avoid prolonged litigation. The settlement reflects Sebi’s commitment to enforcing insider trading regulations and ensuring that market participants adhere to transparency and fairness in trading activities. This case also highlights the importance of compliance with regulatory frameworks designed to maintain investor confidence and market integrity.
