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    Sebi imposes fine of Rs 1 cr on Aptech for violating insider trading norms

    Synopsis

    The regulator had investigated whether Aptech had violated any insider trading norms from August 1, 2016, to September 14, 2016. Aptech had said on September 7, 2016, that it had forayed into the pre-school segment.

    Sebi
    Considering its nature and the impact on the scrip price, Sebi considered the announcement as unpublished price sensitive information because it included information related to expansion of business.
    Mumbai: The Securities and Exchange Board of India (Sebi) has imposed a fine of Rs 1 crore on Aptech Ltd. for violating insider trading rules in 2016.

    The regulator had investigated whether Aptech had violated any insider trading norms from August 1, 2016, to September 14, 2016. Aptech had said on September 7, 2016, that it had forayed into the pre-school segment.

    Considering its nature and the impact on the scrip price, Sebi considered the announcement as unpublished price sensitive information because it included information related to expansion of business.

    The regulator said its investigation revealed that designated people and their immediate relatives, totalling 11 in number, made wrongful gains of Rs 12.68 crore by trading in Aptech shares during a period when the trading window ought to have been closed.

    Sebi said if Aptech had effectively used the trading window mechanism as an instrument to prevent insider trading by the designated people and their immediate relatives who are insiders, such wrongful gains made by them could have been averted.
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    “I note that Sebi had issued show cause notice under section 11B of the Sebi Act to such insiders, calling upon them to show cause as to why such wrongful gains made should not be disgorged and the same is pending for final determination,” Sebi’s adjudication officer said in his order.

    “The non-serious and casual approach on the part of the noticee (Aptech) towards compliance with the PIT (Prohibition of Insider Trading) Regulations, as found in this case, is unbecoming a conduct of a listed company which has aided and contributed to the commission of insider trading violation, which is the most heinous violation in the securities market,” Sebi said.

    The regulator said another show cause notice had been issued to the directors of Aptech for trading in shares of the company during the relevant period.

    “The said entities have opted for settlement of the proceedings under the Sebi (Settlement Proceedings) Regulations, 2018, and filed revised consent terms with the internal committee of Sebi,” the regulator said in its order on Wednesday.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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