REPETITIVE NATURE OF VIOLATIONS SUBJECT TO PENALTY DESPITE NOT CREATING DISPROPORTIONATE GAINS OR UNFAIR ADVANTAGE
Authored by Padma Akila
DATE(S) OF ORDER: 15th April 2021
PURPORTED CONTRAVENTION COMMITTED: One of the directors of the Company traded in its scrip during the window closure period without taking pre-clearance for executing trades, leading to violation of Cl. 4.2.2 and 4.3.1 of Code of Conduct for Prevention of Insider Trading (COC) of the Company r/w Cl. 3.2.2 & 3.3.1 respectively, of Model Code of Conduct for Prevention of Insider Trading for Listed Companies (Model COC) specified in Part A of Schedule I to Regulation 12(1) & 12(2) of the PIT Regulations, 1992, r/w Regulation 12(2) of PIT Regulations, 2015.
PERSONS CHARGED AND WHO ARE THEY: M Narasimha Rao- Director (Noticee)
COMPANY THAT DID NOT FULFILL THE DISCLOSURE REQUIREMENTS: Trinethra Infra Ventures Limited (Company)
BACKGROUND OF THE CASE:
1. Pursuant to an investigation for the period from 1st January 2009 to 31st March 2010, it was found that the Noticee traded in the scrip of the Company during the window closure period, without taking pre-clearance for executing trades, leading to the contraventions of the provisions mentioned in the table above.
2. The Show Cause Notice (SCN) was sent through speed post with acknowledgement due which was returned undelivered. Thereafter, SCN was served on the Noticee through publication, and the Noticee was also granted an opportunity of personal hearing. However, no reply was received from the Noticee.
FINDINGS BY THE ADJUDICATING OFFICER (