Mumbai, Sep 28 (IANS): Market regulator SEBI has imposed monetary penalties on Videocon Industries Ltd (VIL) promoter, Venugopal Dhoot, and two other entities on charges on insider trading that resulted in unusual movement and fall of VIL scrip during the period between April and September 2017.
In its order, the SEBI has imposed Rs 25 lakh fine each on Dhoot and Electroparts (India) Pvt Ltd (erstwhile Shree Dhoot Trading and Agencies Ltd), and Videocon Realty and Infrastructures Ltd for possible insider trading and volume manipulation.
"During the investigation, SEBI had observed prima facie violations of Regulation 4(1) of SEBI (Prohibition of Insider Trading) Regulations, 2015 (hereinafter referred as 'SEBI PIT Regulations, 2015'), read with Sec 12A (d) & (e) of Securities and Exchange Board of India Act, 1992, (hereinafter referred as 'SEBI Act, 1992')...," it said.
Based on the findings of the investigation, the SEBI initiated adjudication proceedings in the matter and issued show cause notice to all the promoter entities. But despite repeated reminders, neither in person hearing could be undertaken nor was any reply to notices received.
"Considering the fact that the noticees have neither filed any reply nor have availed the opportunity of personal hearing despite being granted opportunities for the same, I am of the view that the noticees have nothing to submit, and in terms of rule 4(7) of the SCR Rules, the matter can be proceeded ex-parte on the basis of material available on record. In absence of any response from the noticees to the SCN, I presume that the noticees have admitted the charges levelled against them," its order said.
The regulator has given all the noticees 45 days to pay the said amount of penalty. In the event of failure to pay, necessary recovery action may be proceeded.