Sebi levies Rs 25 lakh fine on individual for insider trading in L&T Finance Holdings scrip

New Delhi: Markets regulator Sebi on Tuesday levied a total fine of Rs 25 lakh on an individual for insider trading in the scrip of L&T Finance Holdings Ltd. “The facts of the case clearly bring out the default made by the Noticee that being an insider, he traded in the scrip having possession of UPSI, traded during trading window closure period, failed to obtain pre-clearance, failed to make disclosure for his trading and made contra trades,” Sebi said.

Noticee refers to Uday Agarwal.

The unpublished price-sensitive information (UPSI) pertained to financial results for the period ended June 30, 2018.

The period of UPSI was from July 7, 2018, to July 20, 2018.

By virtue of his involvement in the financial results, he had access to the UPSI and was considered an insider, Sebi noted.

Being an insider, he traded when in possession of UPSI, thereby violating PIT norms that provide for a complete restraint on trading by the insiders when in possession of UPSI.

In addition, he made wrong disclosures to the firm in respect of his trades.

Also, he was required to take pre-clearance in respect of his trades having aggregate buy/sell value in excess of Rs 10 lakh in one transaction or a series of transactions in the scrip of L&T Finance in F&O segment during quarters ending June 2018, September 2018 and December 2018.

However, he failed to do so.

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