SEBI fines employee for violating insider trading norms in Titan's shares
Samik Ghosh has been directed to pay Rs.2 lakh
The capital markets regulator Securities and Exchange Board of India (SEBI) has levied a fine on an individual, Samik Ghosh, for violating insider trading norms in the shares of Titan Company Ltd (TCL).
SEBI's order came after it received a letter from TCL, intimating about the contravention of Prohibition of Insider Trading (PIT) Rules and the company's code of conduct. It apprised SEBI of the transactions carried out by its designated person/employee from April 2018 to March 2019.
The market regulator conducted an investigation into the company's scrip. It observed several non-compliances with PIT regulations during that period. The noticee had transacted in the securities of the firm but failed to make a disclosure as per the SEBI's insider trading norms. The disclosure was mandatory, as the transactions exceeded the market value of Rs.10 lakh.
SEBI held that being a designated person of TCL by trading during the window closure, he did not take requisite pre-clearance from the company. By executing contra trades, he violated the code of conduct under the PIT rules.