Sebi fines executive director, promoter of Unitech Ltd for violating insider trading norms

Markets regulator Sebi on Thursday imposed a total fine of Rs 500000 on Unitech Limited Executive Director Sanjay Chandra and its promoter Mayfair Capital for disclosure lapses with regard to change in their shareholding in the company. The regulator has fined the promoters for violating Prohibition of Insider Trading (PIT) regulations. "The regulation seeks to achieve fair treatment by...mandating disclosure of timely and adequate information to enable shareholders to make an informed decision and ensuring that there is a fair and informed market in the shares of companies affected by such change in control," Sebi said. The orders follow a probe conducted by Sebi in the scrip of Unitech between October 2008 and December 2008. During the investigation, Sebi found that Sanjay Chandra and Mayfair Capital traded in the scrip of Unitech and failed to make disclosures with regard to change in their shareholding. Sebi also noted that two promoter entities, Prakausali Investments India Private Limited and Mayfair Investments Private Limited amalgamated and formed Mayfair Capital Private Limited in 2013, however, during the investigation period they existed as separate entities. "During the period of investigation, the shareholding of the said two promoter entities viz. Prakausali and Mayfair Investments changed in the scrip of Unitech. Therefore, Noticee was required to make disclosures for the... changes in the shareholding of the said two promoter entities," Sebi noted. However, they failed to do so. Accordingly, a fine of Rs 200000 on Sanjay Chandra and Rs 300000 on Mayfair Capital has been levied by the regulator. In November, the regulator slapped a fine of Rs 200000 on Unitech Limited for making wrong disclosure with regard to shareholding pattern of some promoters.