SEBI passes Settlement Order in respect of United India Insurance Company Ltd. in the matter of Axis Bank Ltd.
The Securities and Exchange Board of India (SEBI) has passed a Settlement Order in respect of United India Insurance Company Limited in the matter of Axis Bank Limited.
An investigation was conducted by SEBI in the matter of Axis Bank Limited(Company). During the said investigation, it was noted that United India Insurance Company Limited (applicant) had delayed making disclosures as required under Regulation 7(2)(a)of the SEBI (Prohibition of Insider Trading), 2015(PIT Regulations), in respect of change in their shareholding in the Company.
The Investigation had made it clear that during the period from October 01, 2017 to September 30, 2018, the value of securities of the Company traded by the applicant, a promoter entity of the Company, on each trading day was more than Rs. 10 lakhs. The same was required to be disclosed to the Company within two tradingdays under Regulation 7(2)(a)of the PIT Regulations.
However, in 5 instances the said disclosures were made by the applicant to the Company only with a delay of 10 –17 days. So, SEBI issued a Notice of Summary Settlement to the applicant, intimating thereby that if the applicant so desired, the proceedings (to be initiated), may be settled and disposed ofupon filing of a settlement application under Chapter-II of the SEBI (Settlement Proceedings) Regulations, 2018 ( Settlement Regulations) alongwith remittance of settlement amount of Rs. 10,13,906/- to SEBI in terms of Regulation 16(1)of the Settlement Regulations, within 30 calendar days.
Hence, it was noted that the applicant filed an application for settlement, in terms of Chapter VII of the Settlement Regulations, proposing to settle, admitting the findings of fact and conclusions of law and the defaults, through a settlement order and remitted the aforementioned amount towards the settlement charges.
Taking all these factors into consideration, the markets regulator ordered that the proposed proceedings to be initiated for the default are settled qua the applicant as per certain terms. SEBI concluded that it would not initiate any enforcement action against the applicant for the said defaults. This order has also disposed of the proceedings that may be initiated for the defaults in respect of the applicant.
It was also concluded that passing of this Order would be without prejudice to the right of SEBI under Regulation 28 of the Settlement Regulations to take enforcement actions including commencing proceedings against the applicant, if SEBI finds that any representation made by the applicant in the present settlement proceedings is subsequently found to be untrue or the applicant has breached any of the clauses/ conditions of undertakings/ waivers filed during the present settlement proceedings or if there was a discrepancy while arriving at the settlement terms.