Sebi fines Biocon employee for violating insider trading standards
Market regulator Sebi fined a Biocon Ltd employee on Friday for violating insider trading standards by dealing with the company’s certificate.
The employee, Vandana Singh (notified), managing director of regulatory affairs of Biocon at the time of the investigation and also a designate, faces a fine of Rs 3 lakh for violating the provisions of the standards prohibiting the crime of insider (PIT).
An investigation by the regulator found that Singh, who owned 9,550 shares of the company, acquired through the exercise of an employee stock option plan (ESOP), sold 3,550 shares between May 2018 and September 2018 without requesting the prior approval of the Compliance Officer.
“The notification by not obtaining prior authorization from Biocon’s compliance officer for the transactions in question violated the provisions of the PIT Regulation,” Sebi said.
In addition, Singh has also delayed the required disclosures.
Under the PIT regulations, each promoter, employee and director of each company must disclose to the company the number of securities acquired or transferred within two trading days of the transaction if the value of the securities traded exceeds a certain threshold.
In this case, Singh’s transactions exceeded the value of Rs 10 lakh on two occasions and was due to be disclosed within two days, but she failed to do so.
As a result, Sebi imposed a consolidated fine of Rs 3 lakh on Singh for the two violations – failing to obtain prior clearance and making late disclosures.
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