Sebi on Tuesday imposed a total fine of Rs 1 crore on four individuals and an entity as well as barred them from the securities market for one year in a case of alleged insider trading activities in the shares of PC Jeweller.
Besides, they have been restrained from dealing with the securities of PC Jeweller, directly or indirectly, for two years.
The individuals and entity facing the action are Shivani Gupta, Sachin Gupta, Amit Garg, Balram Garg and Quick Developers Pvt Ltd (QDPL). A fine of Rs 20 lakh has been imposed on each of them.
In a 53-page order, the watchdog also directed Shivani Gupta, Sachin Gupta and Amit Garg to disgorge more than Rs 6.17 crore while Amit Garg and QDPL were ordered to disgorge over Rs 2.13 crore.
The amount of over Rs 6.17 crore has to be disgorged, jointly or severally, by the individuals concerned. Similar is the direction for the other two with respect to the amount of more than Rs 2.13 crore. The impounded money would be credited to the Investor Protection and Education Fund (IPEF).
The investigation period was April-July 2018.
The regulator noted that late Padam Chand and Balram Garg communicated UPSI (Unpublished Price Sensitive Information) with regard to the proposal for buyback of equity shares and its subsequent withdrawal to Shivani Gupta, Sachin Gupta, Amit Garg and QDPL.
The individuals and entities traded in the shares of PC Jeweller while in possession of UPSI, which was in violation of insider trading norms.
Shivani is the daughter-in-law of Padam Chand Gupta, who was the chairman of PC Jewellers; Sachin is the husband of Shivani and son of Padam Chand; Amit is the nephew of Padam Chand and Balram Garg is a promoter of PC Jeweller.
Amit Garg held 50 per cent shareholding in QDPL and was also its director between August 2015-April 2018, as per Sebi.
The regulator concluded that the entities by indulging in insider trading and Balram Garg, by communicating the information, violated insider trading norms and are consequently facing fine of Rs 20 lakh each.
Through an interim order in December 2019, Sebi had ordered impounding of over Rs 6.17 crore jointly and severally from Shivani, Sachin and Amit Garg and impounding of over Rs 2.13 crore jointly and severally, from QDPL and Amit Garg.