Industrialist Venugopal Dhoot and two other businesses were fined a total of Rs. 75 lakh by the markets regulator on Tuesday for insider trading in the shares of
The watchdog also fined the company’s two promoters, Videocon Realty and Infrastructures Ltd and Electroparts (India) Pvt Ltd, in addition to Dhoot, who served as managing director. Formerly known as Shree Dhoot Trading and Agencies, Electroparts.
Insider trading regulations were broken in 2017.
Insiders who received notices carried out off-market transactions while in possession of Unpublished Price Sensitive Information (UPSI), according to the notices.
The Videocon scrip was the subject of an investigation from April to September 2017.
The information regarding Dena Bank’s classification of the Videocons loan account as an NPA was deemed to be UPSI because it had the potential to significantly affect the price.
UPSI took place from March 1 to May 9, 2017.
During the UPSI period, the two promoter entities either pledged their shares or transferred their shares to other entities. During the UPSI period, the authorized representative Venugopal Dhoot, who was an insider, traded on behalf of the two promoters who were also insiders.
They risk a fine of Rs. 25 lakh each for breaking market guidelines.
(Only the report’s headline and image may have been changed by the Business Standard team; all other material was likely created automatically from a syndicated feed.)
