Sebi Logo.
Credit: Reuters File Photo
An individual has settled a case pertaining to alleged violation of insider trading norms in the matter of ABC Bearings Ltd with capital markets regulator Sebi after paying Rs 44.20 lakh as settlement fee.
The order came after Sahir Patel (applicant) proposed to settle the proceedings through a settlement order.
'The instant proceedings initiated against the applicant vide showcause notice (SCN) dated September 20, 2022, are disposed of,' Sebi's Adjudicating Officer Amit Kapoor said in the settlement order on Monday.
The case relates to ABC Bearings Ltd (ABC), which made a corporate announcement on the BSE in July 2017, relating to the merger of ABC with Timken India Ltd (TIL) through a scheme of amalgamation and arrangement.
Further, it was observed that the price of the scrip of ABC registered an increase of 19.99 per cent in one trading day.
Thereafter, Sebi conducted a detailed investigation in the matter to ascertain whether trading was done in the shares of ABC by certain suspected entities on the basis of unpublished price sensitive information relating to merger of ABC with TIL.
The investigation period was January 2017 to July 2017.
After the investigation, it was alleged that Sahir Patel had violated the provisions of PIT (Prohibition of Insider Trading) regulations.
Thereafter, a show cause notice dated September 20, 2022, was issued for the alleged contravention of the norms.
Subsequently, the applicant had filed a settlement application with Sebi, which recommended to settle the matter on payment of Rs 44.20 lakh.