In a settlement order, Sebi said it has disposed of the adjudication proceedings initiated against the applicant, Mukherjea
An individual has settled with markets regulator Sebi a case of alleged insider trading in the shares of Manappuram Finance Ltd (MFL) after paying Rs 1.38 crore towards settlement charges.
Sebi agreed to settle proposed adjudication proceedings in the case, pertaining to alleged violation of insider trading norms, after it was approached by Suarabh Mukherjea, with a plea under the settlement regulations “without admitting or denying the findings of fact and conclusion of law“.
In a settlement order, Sebi said it has disposed of the adjudication proceedings initiated against the applicant, Mukherjea.
It was alleged that Mukherjea of Ambit Capital, which is a market intermediary, was in possession of unpublished price sensitive information (UPSI) about Manappuram Finance’s quarterly results and the same was circulated to its clients indirectly by way of a research report.
In the order, Sebi noted that Mukherjea of Ambit Capital in its meeting in March, 2013 with I Unnikrishnan and Sachin Agrawal of MFL procured the unpublished price sensitive information and communicated the same through research report, which was in alleged violation of PIT (Prohibition of Insider Trading) norms.
In addition, Mukherjea allegedly did not maintain the confidentiality of the price sensitive information thereby violated the code of conduct for PIT stipulated for other entities.
Further, the act of commission of releasing research report prior to making the information public resulted in fraud on innocent investors, who were not privy to the such price sensitive information.
By doing so, he allegedly violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms. Pending adjudication proceedings, Mukherjea approached Sebi to settle the instant proceedings.
Pursuant to the application filed by him, Sebi’s high powered advisory committee recommended the case for settlement on the payment of Rs 1.38 crore. This was also approved by the regulator’s panel of whole-time members, following which he remitted the amount.
Accordingly, the regulator has disposed of the adjudication proceedings initiated against Mukherjea.