Bharti Airtel's promoter firm Indian Continent Investment has settled an alleged insider trading case after paying Rs 2.17 lakh towards settlement charges to regulator Sebi.
Bharti Airtel’s promoter firm Indian Continent Investment has settled an alleged insider trading case after paying Rs 2.17 lakh towards settlement charges to regulator Sebi. Indian Continent Investment had acquired 26,58,60,986 shares constituting 7 per cent stake in the company during July 2007 to December 2010. As a result, Indian Continent Investment’s shareholding in Bharti Aitel crossed 5 per cent on April 29, 2008, requiring it to make necessary disclosures under PIT (Prohibition of Insider Trading) Regulations.
However, it was alleged that the promoter company failed to make such disclosure, prompting Sebi to initiate a probe. In a settlement order passed today, Sebi said it is disposing of “the adjudication proceedings initiated against the noticee (Indian Continent Investment). The Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against Indian Continent Investment over the violation of regulations.
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Pending the adjudication proceedings, it had offered to settle the matter on payment of charges. Thereafter, Sebi’s High Powered Advisory Committee recommended the case for settlement on the payment of the amount. This was also approved by Sebi’s panel of whole-time members, following which the company remitted a little over Rs 2.17 lakh.
Accordingly, Sebi has disposed of the adjudication proceedings initiated against the entity in the matter. It further said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by the company is found to be untrue. Indian Continent Investment continued to hold 6.65 per cent stake in Bharti Aitel as on December 31, 2016.