Mumbai: Market watchdog Sebi has imposed a Rs 2 lakh penalty on an employee of Mahindra & Mahindra for failing to make the necessary disclosures with regard to change in his stake after dealing in shares of the automaker.
The penalty comes few days after, Sebi had slapped fines on two other employees of Mahindra & Mahindra for violating 'prohibition of insider trading norms'. Like in the previous two cases, the probe in the latest case was also initiated by Sebi after the automobile major reported about the violations to the regulator. In the latest order today, the Securities and Exchange Board of India (Sebi) has imposed "a penalty of Rs 2 lakh on Dilip Yewale", a designated employee with Mahindra & Mahindra.
The market regulator observed that Yewale "had sold 644 shares of Mahindra & Mahindra on October 24, 2013 for a total amount of Rs 5,70,380". "As a result of the sale of shares by the noticee, there was a change in shareholding of the noticee exceeding Rs 5 lakh which required disclosures to be made to the company and the stock exchange within the specified two days under...the PIT (Prohibition of Insider Trading) Regulations, 1992".
"However, it is observed that the noticee admittedly failed to make the necessary disclosures in this regard," the market regulator added. Mahindra & Mahindra on December, 2013 had reported to Sebi that Yewale had dealt in the shares of the firm on October 24, last year, when the trading window was closed on account of the announcement of unaudited financial results of the company for the second quarter and half year ended September 30, 2013. Last week, the regulator had imposed a penalty of Rs 2 lakh on Gopalan Murali and Rs 4 lakh on Pavan Kumar Sodani -- both designated employees of Mahindra & Mahindra -- for trading in the auto-maker's shares during restricted periods.
