Sebi fines 4 entities for violating insider trading norms

Markets regulator Sebi today imposed a total penalty of Rs 1100000 on four entities for violating insider trading norms. The Securities and Exchange Board of India (Sebi) has levied a fine of Rs 400000 on Kisan Mouldings, Rs 2.500000 each on Surinder Jagannath Aggarwal and Polsons Traders LLP and Rs 200000 on Surinder Jagannath Aggarwal HUF. The regulator conducted an examination in the scrip of Kisan Mouldings and found that Aggarwal and HUF, who were promoters of the company in the relevant period, sold their shares in the firm during the period April 2016 to May 2017. However, they failed to make disclosures to the company. Besides, it noted that Kisan Mouldings made preferential allotment of 11.1700000 shares to Polsons, a promoter of the firm, in April, 2016. However, Kisan Mouldings did not make the disclosure to the stock exchanges in this regard, while Polsons did not inform the firm about the allotment. By not making such disclosures, the four entities violated PIT (Prohibition of Insider Trading) Regulations and accordingly the regulator has slapped fine on them.