Eight Entities Pay Rs 3 Crore To SEBI To Settle Alleged Insider Trading Case In Divi’s Laboratories 
The logo of Securities of Exchange Board of India (SEBI) is pictured on its headquarters in Bandra Kurla Complex in Mumbai, India. (Source: BloombergQuint)

Eight Entities Pay Rs 3 Crore To SEBI To Settle Alleged Insider Trading Case In Divi’s Laboratories 


Eight individuals have paid a little over Rs 3 crore to regulator SEBI to settle a case of alleged violation of insider trading norms in the scrip of Divi’s Laboratories Ltd.

In addition to the settlement amount, the individuals also remitted Rs 96.68 lakh as disgorgement of ill-gotten gains, SEBI said in a settlement order dated Oct. 21.

Divi’s Laboratories had made an announcement on July 10, 2017 on the exchange, which was an unpublished price sensitive information in terms of Prohibition of Insider Trading norms.

The individuals were identified as insiders who had directly or indirectly traded in the scrip of the firm during the UPSI period, and accordingly the proceedings were initiated.

Pending the proceedings, they filed settlement applications with the regulator without admitting or denying the guilt.

Considering the settlement terms proposed by the entities, the high powered advisory committee of SEBI recommended each of the applications for settlement upon payment of amount in respect of each of the applicants, which amounted to Rs 3.09 crore.

Accordingly, the settlement amounts were remitted by the applicants and an additional amount of Rs 96.68 lakh was also remitted as disgorgement of ill-gotten gains, SEBI noted.

Praveen Lingamneni, L Kishore Babu, Nagesh Lingamneni, Sri Lakshmi Lingamneni, Radhika Dronavali, D Srinivas Rao, Gopichand Lingamneni and Pushpa Latha Devi are the individuals who settled the case.

As per a separate order, eight applicants settled with markets regulator SEBI a case pertaining to acquisition of shares in Punjab Alkalies and Chemicals Ltd. by paying Rs 3.77 lakh as settlement amount.

In March 2018, the applicants, acting as persons in concert, acquired certain shares of the company, thereby increasing their shareholding from 4.98% to 5.42%.

The information was disclosed with a delay of 568 days.

They further acquired shares in May 2018, increasing their stake from 14.69% to 15.02% and disclosed this information to the exchanges with a delay of 492 days.

As per market norms, the information pertaining to acquisition of shares was required to be disclosed within two days.

While the proceedings were pending, an application was filed with the regulator to settle the case.

Sebi's HPAC considered the settlement terms proposed by the applicants and recommended the case for settlement on payment of Rs 3.77 lakh towards settlement charges, which was remitted by the applicants in October.

Separately, Savi Portfolio Management Services Ltd. paid Rs 3 lakh towards settlement charges for making delayed disclosures in respect of change in its shareholding in Karma Industries Ltd.

Savi Portfolio Management Services had made disclosures with a delay of 1,069 days.

Before initiating the proceedings, SEBI issued a notice to Savi Portfolio Management Services, intimating that the proceedings may be settled and disposed of upon filing of a settlement application along with remittance of Rs 3 lakh as settlement charges.

The amount was remitted by the firm in September, SEBI noted.

According to separate orders passed on Thursday, five entities are facing a fine of Rs 1 lakh each for failing to make requisite disclosures after becoming promoter or part of promoter group of Unisys Softwares and Holding Industries.

The entities -- Priyanka Vinyas Trust, Kritika Trust, Prernai Trust, Pratigyai Trust and Meenakshi Trust -- had become promoter or part of promoter group of Unisys on Oct. 1, 2011.

They were required to make disclosures to the company within two days, but failed to do so.

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