A probe conducted by SEBI revealed that Pedriano Investments, one of the promoter entity of Zensar Technologies, had failed to disclose to the company information regarding its shareholding within the specified time-frame
The Securities and Exchange Board of India (SEBI) has settled allegations of insider trading charges against Pedriano Investments after it paid a little over Rs6 lakh towards settlement fees.
SEBI, in its consent order passed on 12th April, said the order will come into force immediately and that it has disposed of adjudication proceedings against the company.
A consent order enables settling administrative or civil proceedings between the regulator and the concerned party.
The regulator had conducted investigations into alleged irregularities in the scrip of Zensar Technologies as well as promoter's shareholding for the quarters ended March 2009 to March 2010.
The probe revealed that Pedriano Investments, one of the promoter entity of Zensar Technologies, had failed to disclose to the company information regarding its shareholding within the specified time-frame.
Pedriano Investments’ holding has fallen from 8.11% in December 2009 to 2.39% in March 2010 indicating a significant change of more than 2%, a level that would necessitate sharing of such information.
Consequently, SEBI had initiated adjudication proceedings against the company to inquire into alleged violations of insider trading norms. The regulator issued a show-cause notice to Pedriano Investments in May last year.
The company submitted a consent order application to SEBI in August 2012, while the adjudication proceedings were pending against it and proposed to pay Rs3.29 lakh towards settlement fees and in January this year revised the amount to Rs6.07 lakh.
After that, the revised consent terms were placed before the High Powered Advisory Committee of SEBI. The committee recommended that the "case may be settled on payment of Rs6.07 lakh." Accordingly, the applicant has remitted a sum of Rs6.07 lakh towards the settlement charges.
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