2 individuals settle insider trading cases with SEBI related to Mindtree scrips

live bse live nse live Volume Todays L/H More × Two individuals have settled with markets regulator Sebi cases of alleged violation of insider trading norms while dealing in the scrip of Mindtree Limited by paying a total of over Rs 1000000 towards settlement charges. Sebi conducted an examination in the matter of Mindtree and found that the individuals, Padmanabhan Kalyanasundaram and Hemanth Kumar Kurasala, had delayed making disclosures as required under the Prohibition of Insider Trading (PIT) Regulations in respect of change in their shareholding in the company. In March 2016, Kalyanasundaram executed a transaction for creation of pledge on 3,220 bonus shares of the company. Since the value of the transaction leading to creation of pledge exceeded Rs 1000000, the trades were required to be disclosed to the company under PIT regulations within two working days. However, it was observed during the examination that the same was disclosed after a delay of 935 days, Sebi noted. In the case of Kurasala, Sebi noted that the cumulative value of the trades carried out by him exceeded Rs 1000000 on three occasions and were required to be disclosed to the company within two days but he failed to do so and made disclosures on all the three occasions. Before initiating proceedings, separate notices of summary settlement were issued to both the individuals intimating that the proceedings may be settled and disposed of upon filing of a settlement application along with remittance of settlement amount. The settlement amount was Rs 3,11,719 for Kalyanasundaram and Rs 7,24,219 for Kurasala. Subsequently, both the individuals filed applications for settlement without admitting or denying the guilt and remitted their respective settlement amounts. Accordingly, "proceedings that could have been initiated for the defaults... are settled qua the applicant," Sebi said in similarly worded separate settlement orders dated April 22.