New Delhi, November 20, 2017

As many as seven entities today settled a probe by markets regulator Sebi into alleged violation of insider trading norms on a payment of about Rs 50 lakh towards settlement charges.

While Dileep Malhotra paid a total of Rs 22.7 lakh to settle the case, Ranjit Malhotra settled the matter after paying over Rs 12.27 lakh, Arjun Transport Co Pvt Ltd paid Rs 5.74 lakh and Kabir Malhotra paid Rs 3.08 lakh, the regulator said in settlement orders.

Besides, Satish Chandra Malhotra, Uma Malhotra and Anjali Malhotra settled the matter after paying Rs 2 lakh each.

The regulator agreed to settle the adjudication proceedings in the matter of Empire Industries pertaining to violation of PIT (Prohibition of Insider Trading) Regulations after it was approached by these seven entities with a plea under the settlement regulations.

"This settlement order disposes of the adjudication proceedings initiated against the noticee," the regulator said in seven similar-worded settlement orders adding that it would not initiate any enforcement action for the alleged defaults.

It was alleged that the entities had traded in the shares of Empire Industries during July 2014 to September 2015 leading to change in their respective shareholdings.

They were required to make the disclosures about change in their respective shareholdings to the firm and the stock exchange under the PIT norms. However, they allegedly failed to make such disclosures.

Sebi had initiated adjudication proceedings to inquire into and adjudge the alleged violations of the provisions of PIT norms by the entities in the scrip of Empire Industries during the period from June 6, 2014 to September 30, 2015.

Pending adjudication proceedings, these seven entities had approached Sebi earlier this year to settle the case on payment settlement charges.

Thereafter, Sebi's High Powered Advisory Committee recommended the case for settlement on the payment of about Rs 50 lakh. This was also approved by Sebi's panel of whole-time members, following which they remitted the amount.

Accordingly, the Securities and Exchange Board of India (Sebi) has disposed of the adjudication proceedings initiated against them.
It further said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by them is found to be untrue.

[The Times of India]