Mumbai The Securities and Exchange Board of India (SEBI) has imposed a fine of 1 lakh each on six employees of Titan Company Limited for non-compliance with the market regulator’s Prohibition of Insider Trading (PIT) rules.
As per the Sebi order, the six employees of Titan include Shiv Kumar C, Hamendra Sharma, Chandrakant Kaloni, Mathalai Manikandan, Sarath Kumar Mulugu and Mahesh S. The matter pertains to the period 2018-19 as per the order of SEBI.
This came after the company informed SEBI about the violation of SEBI’s PIT, rules and code of conduct of the company to prevent insider trading by its employees.
Following which the market regulator conducted a scrutiny of Titan’s stock, in which it observed several non-compliance with its PIT regulations during the period from April 1, 2018 to March 31, 2019.
SEBI observed that, on several occasions, the total value traded in securities by all the six employees mentioned exceeded 10 lakhs. For which the employees did not make any disclosure as per the company’s code of conduct.
As per Section 7(2) of the PIT Regulations of SEBI, it is expressly mandated that the promoter, employee and director of every company shall disclose to the company the number of such securities acquired or disposed of within two business days of such transaction. shall, if the value of the securities traded, whether in one transaction or in a series of transactions in any calendar quarter, exceeds ten lakh rupees of trading value or such other value as may be specified.
However, the company also confirmed that these 6 employees did not make any such disclosure.
SEBI said, “As per Regulation 7(2)(a) of the PIT Regulations, being employees of the company, they were required to make disclosure to Titan for each transaction within 2 working days. However, records to show that But no evidence is available that the employees had made any disclosure in terms of the above regulation for the aforesaid transactions.
SEBI has directed the employees to pay the fine amount 1 lakh each within 45 days.