SEBI imposes Rs 4 lakh penalty on Sunday Exports, two directors

SEBI imposes Rs 4 lakh penalty on Sunday Exports, two directors Mumbai: Market regulator SEBI Thursday said it has imposed total a penalty of Rs 4 lakh on Sunday Exports Ltd (SEL) and its two directors for delay in framing the model code of conduct for prevention of insider trading regulations.

In an order, SEBI (Securities and Exchange Board of India) said it has slapped a fine of Rs 1 lakh each on SEL directors Pravinchandra Dashrathbhai Patel and Fulian Ashvin Reshamwala.

Besides, the regulator said it has slapped a total penalty of Rs 2 lakh on SEL for delay in framing the internal policy on code of conduct for prevention of insider trading as well as for not disclosing its quarterly financial results to the stock exchange with the prescribed period of 15 minutes after the conclusion of the board meeting.

"The noticees, being the Whole Time Directors of SEL, failed in discharging their responsibility of the overall supervision of setting forth policies, procedures, monitoring adherence to the rules for the preservation of 'Price Sensitive Information', preclearing; of designated employees? and their dependents' trades, monitoring of trades and the implementation of the code of conduct," SEBI said.

In Sunday Exports case, SEBI said that the company submitted the approved quarterly financial results to the stock exchange with a delay of two days.

The regulator said it had conducted an investigation into alleged irregularity in the trading in the scrip of Sunday Exports during April-July 2010.

PTI