SEBI pledges pharma company Biocon Ltd. (Biocon Ltd) and a person authorized by him to impose a fine of Rs 14 lakhs for violating market rules.
The market regulator Sebi has imposed a heavy fine on a large pharma company. SEBI pledges pharma company Biocon Ltd. (Biocon Ltd) and a person authorized by him to impose a fine of Rs. 14 lakhs for violating market rules. The Securities and Exchange Board of India (SEBI) has imposed a fine of Rs 5 lakh on the nominee, Narendra Chirmule, a company nominee. He was employed as senior vice president of the research and development department at the company. Despite the business being closed, Chirmule was fined for dealing in the shares of the company.
By doing this, Chirmule violated the Prohibition of Insider Trading (PIT) rules. SEBI, in a detailed investigation, found that in view of the announcement of the company’s financial results for the quarter ended 31 December 2018, the compliance officer had closed the business from 1 to 26 January 2019. These quarterly results of the company were announced on 24 January 2019.
More than 10 lakh rupees have to be given for the purchase of shares
As per the market rules, promoter of any company, member of promoter group, nominee, director has to inform the stock market in two days of the receipt of share deal and information of more than 10 lakh rupees.
But although Biocon gave this information to the market after 262 days, along with this, according to the market rules, the violation of the code of conduct should be given to the regulator immediately. Biocon informed Sebi about this after 28 days.
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(With language input)