Larsen & Toubro, 2 senior officials settle case with Sebi1 min read . Updated: 31 Jan 2018, 09:27 PM IST
Sebi's high powered advisory committee recommended the case against L&T and two of its senior officials for settlement on the payment of amount totalling Rs10.27 lakh
New Delhi: Engineering major Larsen & Toubro (L&T) and its non-executive chairman A.M. Naik as well as director Shailendra Roy have settled with markets regulator Securities and Exchange Board of India (Sebi) a probe into late compliance with insider trading norms by paying over Rs10 lakh.
However, Sebi did not disclose details of the case. The regulator agreed to settle proposed adjudication proceedings in the case, pertaining to the delayed compliance of insider trading norms after it was approached by these entities with a plea under the settlement regulations “without admitting or denying the findings of fact and conclusion of law".
“The proposed adjudication proceedings for the alleged defaults...are settled," Sebi said in a settlement order passed on Tuesday adding it would not initiate any enforcement action for the alleged defaults.
The company and its two officials had allegedly made “delayed compliance of Sebi (Prohibition of Insider Trading) regulations". Pending adjudication proceedings, these entities had approached Sebi in 2015 to settle the case on payment settlement charges. The authorised representatives of the entities had meeting with the regulator’s internal committee in April 2017, wherein the settlement terms were deliberated.
Thereafter, Sebi’s high powered advisory committee recommended the case for settlement on the payment of amount totalling Rs10.27 lakh. This included Rs2 lakh by Larsen & Toubro, Naik (over Rs4.72 lakh) and Roy (over Rs3.54 lakh). This was also approved by Sebi’s panel of whole-time members, following which they remitted the amount.
Accordingly, the regulator has disposed of the adjudication proceedings initiated against them. It further said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by them is found to be untrue.