OPEN APP
Home >Companies >News >Sebi fines Tata Steel Rs10 lakh for violating insider trading norms

Mumbai: Securities and Exchange Board of India (Sebi) on Thursday imposed a penalty of Rs10 lakh on Tata Steel Ltd for violating insider trading norms while acquiring additional shares of Tinplate Co. of India Ltd in 2009 and 2011.

Interestingly, Sebi initiated proceedings against the steel major only in September this year—more than five years after the violations took place.

The violations pertain to Tinplate’s rights issue in September 2009, after subscribing to which Tata Steel’s stake in the company increased to 42.88% from 30.82% in 2009 and subsequently to 59.44% in 2011. But on both these occasions, according to Sebi, Tata Steel failed to make the necessary disclosures within the mandated two working days and hence violated insider trading norms.

According to Sebi, Tata Steel made the disclosure in the first instance almost after four years.

“I conclude that the notice, admittedly, by making the disclosures with a delay, has violated Regulation 13 (3) read with regulation 13 (5) of the PIT Regulations and thus, liable for imposition of monetary penalty under Section 15 A (b) of the SEBI Act, 1992," the order reads.

As of September, 2017, Tata Steel held a 74.96% stake in Tinplate. Emails sent to Tata Steel were not answered till press time.

On Thursday, Tata Steel shares rose 2.97% to Rs687.90 while Tinplate scrips traded 1.75% higher at Rs258.80. The benchmark Sensex surged 1.08% to end the day at 32,949.21 points.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout