2011 (12) TMI 682

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.... short the Board) observed a sudden spurt in the price and trading volumes in the shares of Alka Securities Ltd. (for short the company). Detailed investigations were conducted in respect of dealings in the scrip of the company during the period September, 2008 to July, 2009. During investigation it was observed that the appellant had sold / transferred 5,23,690 shares of the company and bought / received 8,04,490 shares of the company. The adjudicating officer issued a show cause notice to the appellant on July 15, 2010 alleging that the appellant, being a promoter director, traded substantially in the shares of the company, but failed to make disclosures as per Insider Trading Regulations and so it was proposed to take necessary action fo....

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....ration and so it deserves to be remanded. Regulation 13(4) of Insider Trading Regulations reads as under: Any person who is a director or officer of a listed company, shall disclose to the company and the stock exchange where the securities are listed in Form D, the total number of shares or voting rights held and change in shareholding or voting rights, if there has been a change in such holdings of such person and his dependents (as defined by the company) from the last disclosure made under sub-regulation (2) or under this sub-regulation, and the change exceeds Rs. 5 lakh in value or 25,000 shares or 1% of total shareholding or voting rights, whichever is lower. It is clear that a disclosure has to be made by a person who is ....

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....impugned order by which penalty has been imposed, the adjudicating officer has dealt with the requirements under Regulation 13(4) and 13(5) of the Insider Trading Regulations in para 16 of the order. After considering the common submissions filed by the directors, the adjudicating officer has concluded as under: I also hold that the Noticee was under an obligation to make the required disclosures under Regulation 13(4) of PIT Regulations to the Company and to the Stock Exchange, which the Noticee failed to do. Therefore, the Noticee has violated the provisions of Regulation 13(4) read with 13(5) of PIT Regulations. It is necessary to bring on record necessary material to establish that the appellant is either a director or an of....