New Delhi : The Securities and Exchange Board of India (Sebi) on Tuesday imposed Rs 6 lakh fine on five entities, including Piramal Enterprises, its chairman Ajay Piramal as well as his wife Swati and daughter Nandini for lapses on insider trading control in connection with the sale of domestic healthcare business to Abbott.
The penalty has also been imposed on N Santhanam.
The Sebi has disposed of charges against the company’s director Harinder Sikka saying he cannot be faulted for the transactions as the company had not closed the trading window which would have checked his trades by way of grant of pre-clearances.
The markets regulator found that entities failed to handle the ‘Unpublished Price Sensitive Information’ relating to the sale of domestic healthcare formulation business by to Abbott on a ‘need to know’ basis as Anand Piramal who is neither employee nor Director was privy to the decision at every stage and therefore violated the regulations.Also, they failed to implement the model code of conduct by not announcing closure of trading window on account of the information pertaining to sale of domestic business to Abbott.
