Sebi slaps Rs 36 lakh fine on 4 entities for insider trading

Market regulator Sebi today slapped a total fine of Rs 3600000 on three individuals and Radhe Developers (India) Limited for violating insider trading norms.The case relates to a sharp rally in the scrip of Radhe Developers (India) Limited during March-May, 2008.It was observed that the price of the scrip opened at Rs 47.25 on March 27, 2008 and touched a high of Rs 165.35 on May 7 before closing at Rs 157.70.Besides, Sebi (Securities and Exchange Board of India) has slapped a fine of Rs 500000 each on the company and its two directors -- Praful Patel and Milan Patel for failing to adopt the model code of conduct as required under prohibition of Insider Trading Regulations.According to Sebi, Ashish purchased shares from April 3, 2008 onwards and bought shares even on the day of the Board meeting (April 30, 2008) and immediately sold the scrips after the company's quarterly financial results was announced on May, 2008.He purchased 25,885 shares of the company after April 23, 2008 and sold 6,300 shares after the announcement making a gain of Rs 4.6600000 through these trades.Sebi said " Patels were present in the meeting in the year 2003 when the model code of conduct was adopted by the company...the company and its BoDs (Milan, Ashish and Praful) responsible for setting forth the model code of conduct in absolute incongruity with the one prescribed under the PIT Regulations, which are not in terms of the spirit of the Regulation."Noting about Ashish Patel, Sebi said he was "an insider of the Company had the access to unpublished price-sensitive information and traded in the scrip of Radhe".