SEBI fine Rs 5 lakh on Edelweiss Financial Services compliance officer B Renganathan
New Delhi 16 July: Securities and Exchange Board of India (SEBI) imposed a penalty of Rs 5 lakh on Edelweiss Financial Services compliance officer B Renganathan. He was failing to close the trading window during the occurrence of the unpublished price-sensitive information.
According to SEBI, Renganathan, function as compliance officer of the company, failed to shut the trading window throughout the period of January 25, 2017 on April 5, 2017.
With his failure to close the trading window during this period of time, he has violated the terms of minimum criteria for code of conduct to govern, report and monitor trading by insiders mentioned from the PIT regulations, the regulator added.
Further, he’s admittedly begun intimating stock exchanges on trading window closure only from January 2019.
Accordingly, the ruler imposed the penalty of Rs 5 lakh on him.
Throughout the course of analysis, it had been observed that ECap Equities, a wholly-owned subsidiary of Edelweiss had obtained Alternative Investment Market Advisors Pvt Ltd (AIMIN), a financial technology firm, on April 5, 2017, by entering into a share purchase agreement. The same was revealed by Edelweiss to the NSE and the BSE on the same day.
Further, a term sheet in respect of the said transaction was conducted involving ECap and AIMIN on January 25, 2017.
The purchase of AIMIN from ECap proved to be a price-sensitive information that had come in existence on January 25, 2017, upon signing of duration sheet.