JM Financial's former VP settles insider trading case with SEBI

live bse live nse live Volume Todays L/H More × JM Financial Limited s former vice president Atul Saraogi has settled an alleged insider trading case with SEBI by paying an amount of Rs 1500000 towards settlement charges. During November 2013 to December 2016, the Securities and Exchange Board of India (SEBI) had conducted an investigation in case of alleged trading by Saraogi and his mother-in-law Vimala Devi Kalantri in the scrip of JM Financial Limited (JMFL), the regulator said in its order on Thursday. During the span of investigation, SEBI observed that Saraogi had entered into off-market trades in shares of JMFL and transferred 41,246 shares to his mother-in-law in December 2013. He also acquired 41,246 shares of JMFL through an off-market transaction from Kalantri in October 2014. SEBI noted that Saraogi had not obtained pre-clearance from JMFL for the two off-market trades. Besides, he had entered the off-market transaction in October 2014 when the trading window was closed. By indulging in such trades, he allegedly violated the code of conduct adopted by JMFL as required under PIT (Prohibition of Insider Trading) Regulations. Pursuant to this, a notice was issued to Saraogi, calling upon him to show cause as to why an inquiry should not be held against him. Subsequently, he filed an application with SEBI and proposed to settle the case under the settlement terms for alleged violation of insider trading norms. The regulator considered the proposed settlement terms and recommended the case for settlement upon payment of Rs 15.0500000. Accordingly, he made the payment, following which SEBI disposed of the case. In a separate settlement order, SEBI said Sonata Software Limited has settled a case of alleged violation of insider trading norms by paying Rs 300000 towards settlement fee. It was alleged that Sonata Software made delayed disclosure to the stock exchange about securities traded by its employee, SEBI said in settlement order passed on Wednesday.