Insider trading norms compliance case: Larsen & Toubro settles Sebi probe

The Securities and Exchange Board of India (Sebi) said that Larsen and Toubro (Land T) along with its non-executive chairman A M Naik and director Shailendra N Roy have settled a probe initiated by the regulator into alleged late compliance with insider trading norms by paying over Rs 1000000. In a settlement order of January 30, Sebi said it has agreed to settle proposed adjudication proceedings in the case, pertaining to the delayed compliance of insider trading norms after the firm filed a plea under the settlement regulations “without admitting or denying the findings of fact and conclusion of law”. While Sebi did not disclose details of the case pertaining to Land T and its executives it said the company and its two officials had allegedly made “delayed compliance of Sebi (Prohibition of Insider Trading) regulations”. In 2015, when the adjudication proceedings were still pending in the case, the firm approached Sebi to settle the case on payment settlement charges. In April 2017, the representatives of the firm met the regulator’s internal committee where the settlement terms were deliberated. Subsequently, Sebi’s High Powered Advisory Committee recommended the case for settlement on the payment of Rs 10.2700000. This includes Rs 200000, over Rs 4.7200000 and over Rs 3.5400000 by Land T, Naik and Roy respectively. Sebi said the settlement was also approved by its panel of whole-time members, after which they firm and its executives remitted the money. “The proposed adjudication proceedings for the alleged defaults...are settled,” said Sebi. The regulator said it would not initiate any enforcement action for the alleged defaults.