An individual has settled with markets regulator Sebi a case related to alleged violations of insider trading rules in the shares of PVR Ltd, by paying nearly Rs 31 lakh.
The move came after the person — Kamal Gianchandani — approached Sebi to settle the adjudication proceedings initiated against him through a settlement order.
Under the settlement order, an alleged wrongdoer pays money to Securities and Exchange Board of India (Sebi) to settle the case without admitting or denying the violation.
“The adjudication proceedings initiated against the applicant viz Kamal Gianchandani under the … SCN (show cause notice) dated September 9, 2021 are hereby disposed of,” Sebi said in a settlement order on Thursday.
Gianchandani was heading the PVR Pictures Ltd during the investigation period from April 2014 to March 2017 and was also a designated person of PVR Ltd, the order noted.
The regulator, issued a show cause notice to Gianchandani in September 2021, whereby it was alleged that he had executed eight transactions during October 2015-2016 without obtaining pre-clearance for his trades from the board of PVR Ltd. By doing so he allegedly violated rules prescribed under the insider trading rules.
Further, certain trades executed by Gianchandani were not disclosed to the company as required under the rules, therefore, by not making required disclosures, he allegedly flouted the insider trading rules.
Pending adjudication proceedings, he filed a settlement application with Sebi in October 2021. Following this, Sebi recommended that the matter can be settled on payment of Rs 30.74 lakh towards the settlement amount and consequently, he remitted the amount and settled the case with the capital markets regulator.