Market watchdog Sebi has agreed to settle charges against a former Suzlon Energy director in a case relating to delayed implementation of a revised Code of Conduct at the company for insider trading regulations.
Mumbai: Market watchdog Sebi has agreed to settle charges against a former Suzlon Energy director in a case relating to delayed implementation of a revised Code of Conduct at the company for insider trading regulations.
The regulator settled the charges after payment of Rs 2 lakh towards settlement fees by Ajay Relan, who was a director at Suzlon Energy at the time of the alleged violation, but has left the board since then.
The Sebi (Securities and Exchange Board of India), in its consent order passed on August 27, said it has disposed of adjudication proceedings against Relan and the order would come into force immediately.
A consent order enables settling administrative or civil proceedings between the regulator and the concerned party.
Sebi had conducted an investigation regarding the various price sensitive disclosures made by Suzlon between November and December 2009.
As per norms regarding insider trading, all listed firms were required to frame a code of internal procedures, among others. This regulation was notified by Sebi in 2008.
However, the regulator alleged that Suzlon had amended its code of internal procedures and conduct for prevention of insider trading on February 4, 2011, after a delay of more than two years.
In this regard, adjudication proceedings were initiated against Relan, while the proceedings were in progress, he proposed to pay Rs 2 lakh as settlement fee under Sebi's consent order mechanism, in January, this year.
Earlier in January, Sebi had disposed of proceedings against wind turbine maker Suzlon Energy, its chairman Tulsi Tanti and four other executives after they together paid Rs 12 lakh to settle charges related to alleged delay in amending insider trading norms.