New Delhi, Sep 28 (PTI) Markets regulator Sebi Friday disposed of three cases of alleged disclosure lapses by as many former officials of Multi Commodity Exchange of India (MCX). Also Read - CSB Likely to Finalise Allotment of Bank Shares Today, Check Status at Link Intime Website
The regulator conducted an investigation in the shares of MCX for the period April 2012 to July 2013 and observed that P P Kaladharan, Hemant Vastani and Dipak D Shah had sold shares of the exchange but failed to make necessary disclosures under PIT (Prevention of Insider Trading) Regulations. Also Read - India Inc raises Rs 4.57 lakh cr via debt private placement in Apr-Jan FY19
Under PIT norms, any person who is a director or officer of a listed company has to disclose to the firm and the stock exchange, the total number of shares or voting rights held and change in shareholding, if the change exceeds Rs 5 lakh in value or 25,000 shares or 1 per cent of total shareholding. Also Read - Neogen Chemicals gets Sebi's go ahead for IPO
Kaladharan was the Chief Technology Officer of MCX from March 2011 to April 2014 and Vastani was the Head-Finance and Accounts from March 2011 to March 2013. Shah was the Director-Market Operations from April 2010 to October 2013, as per three separate orders of the Securities and Exchange Board of India (Sebi).
Kaladharan had sold 2,692 shares of MCX during December 2012 on eight days, while Vastani had disposed of similar number of shares during the investigation period on 19 days which led to obligation of disclosure on four days. Shah had offloaded 2,386 shares on three days (once in May 2012 and twice in October 2012) and the cumulative amount for sale of shares was Rs 5.91 lakh.
With regard to Kaladharan, Sebi said that he became ‘officer’ as per code of conduct of MCX only in January 2013 and was not covered under the ambit of PIT Regulations prior to it and disposed of the case against him.
In the order pertaining to Vastani, the regulator noted that he had sold 200 shares of MCX for a consideration of Rs 2.80 lakh.
Since the disclosure requirements under the relevant norms were “not triggered”, Vastani was not liable to make any disclosure, Sebi said.
Shah became ‘officer’ as per code of conduct of MCX only in November 2012 and was not covered under the ambit of PIT norms prior to it, the regulator said in its order pertaining to him.
Noting that the transactions of Shah were executed prior to November 2012, Sebi said he was not covered PIT norms and disposed of the case.
This is published unedited from the PTI feed.