Sebi slaps Rs 3 lakh penalty on Tech Mahindra official

Written by PTI | Mumbai | Updated: Apr 29 2014, 03:29am hrs
TechSebi slapped a fine of Rs 3 lakh on Tech Mahindra official Swaminathan Srinivasan for allegedly failing to make disclosures about change in shareholding
Market regulator Sebi today slapped a fine of Rs 3 lakh on Tech Mahindra official SwaminathanSrinivasan for allegedly failing to make disclosures about change in shareholding.

The Securities and Exchange Board of India (Sebi), in its order, imposed "a penalty of Rs 3 lakh ...on the noticee, SwaminathanSrinivsanwhichwillbecommensuratewiththe violation committedbythenoticee".

Srinivsan,whowasan officer of thecompany, had sold 6,000sharesbetweenFebruary4-8, 2013, resulting in the changein shareholding exceeding Rs 5 lakh in value sincethelastdisclosure.

Thus he failed to make the relevant disclosures, under Sebi's ProhibitionofInsiderTrading regulations, to stock exchanges.

According to Sebi,Srinivsan had admitted to have sold 2,000 shares of the company each on February 4,5 and 8 worth Rs 6.95 lakh.

"The noticee has further inter alia submitted that he has misunderstood thelimitof5,000sharesandRs5 lakh and hadpresumedthatsinceeachofthetransactiondidnot individuallyviolatetheruleof5,000sharesorRs5lakh, they were within theprescribednormsoftradingforsenior associatesofthecompany,and only laterrealisedthat he hadmade amistake and should have taken a pre-clearance for the transaction," Sebi noted.