MUMBAI: Capital market Sebi has passed consent orders on Suzlon Energy BSE 8.02 %, its chairman and managing director Tulsi R Tanti and three of its board of directors for violating rules by delaying the implementation of amendments on insider trading norms.
The regulator had observed that Suzlon BSE 8.02 % had amended its code of internal procedures and conduct for prevention of insider trading on February 4, 2011, after a delay of more than two years.
Also, no mechanism for pre-clearance of trades was incorporated in the code of conduct as mandated by Sebi insider trading regulations. Sebi's investigation revealed that there was a long delay despite the board of directors (like V Raghuraman, Girish R Tanti and Ashish Dhawan) being aware of the changes in Prohibition of Insider Trading (PIT Regulations).
Sebi said the board unduly delayed implementation of the revised code of conduct by deferring the matter when it was discussed in the board meetings on May 29 and August 13, 2010 and the code was subsequently passed in the board meeting on Feb 4, 2011.
"Investigation further revealed that in the Code of Conduct being followed by the applicant prior to adoption of new code in February 2011, there was no provision for pre-clearance of trades which was part of Model code of Conduct in the PIT Regulations even prior to the amendment of November 2008.
The Code of Conduct being followed by the applicant prior to adoption of new Code of Conduct was not in accordance with PIT Regulations," Sebi said in an order on Wednesday.
Sebi settled the case against Suzlon Energy, two of its senior executives officials—chairman Tanti and Compliance Officer Hemal A Kanuga and three directors— V Raghuraman, Girish R Tanti and Ashish Dhawan — after they together agreed to pay Rs 12 lakh as settlement charges.
Courtesy:
30 Jan, 2013, 07.10PM IST, ET Bureau
http://economictimes.indiatimes.com/markets/regulation/suzlon-tulsi-tanti-4-company-execs-settle-charges-with-sebi/articleshow/18258084.cms
The regulator had observed that Suzlon BSE 8.02 % had amended its code of internal procedures and conduct for prevention of insider trading on February 4, 2011, after a delay of more than two years.
Also, no mechanism for pre-clearance of trades was incorporated in the code of conduct as mandated by Sebi insider trading regulations. Sebi's investigation revealed that there was a long delay despite the board of directors (like V Raghuraman, Girish R Tanti and Ashish Dhawan) being aware of the changes in Prohibition of Insider Trading (PIT Regulations).
Sebi said the board unduly delayed implementation of the revised code of conduct by deferring the matter when it was discussed in the board meetings on May 29 and August 13, 2010 and the code was subsequently passed in the board meeting on Feb 4, 2011.
"Investigation further revealed that in the Code of Conduct being followed by the applicant prior to adoption of new code in February 2011, there was no provision for pre-clearance of trades which was part of Model code of Conduct in the PIT Regulations even prior to the amendment of November 2008.
The Code of Conduct being followed by the applicant prior to adoption of new Code of Conduct was not in accordance with PIT Regulations," Sebi said in an order on Wednesday.
Sebi settled the case against Suzlon Energy, two of its senior executives officials—chairman Tanti and Compliance Officer Hemal A Kanuga and three directors— V Raghuraman, Girish R Tanti and Ashish Dhawan — after they together agreed to pay Rs 12 lakh as settlement charges.
Courtesy:
30 Jan, 2013, 07.10PM IST, ET Bureau
http://economictimes.indiatimes.com/markets/regulation/suzlon-tulsi-tanti-4-company-execs-settle-charges-with-sebi/articleshow/18258084.cms
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