Home >Market >Stock-market-news >Sebi imposes Rs9 lakh fine on ING Vysya Bank’s former official

New Delhi: Markets regulator Sebi has imposed a penalty of Rs9 lakh on ING Vysya Bank’s former official for violating insider trading regulations.

The fine was levied on Vinay Agrawal, who was regional head of business banking in ING from August 2011 till 20 June, 2012. Later, he held the position of zonal head of cluster business banking till 10 October, 2013.

The Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against Agrawal, who was alleged to have not complied with PIT (Prohibition of Insider Trading) Regulations.

After conducting an examination of trading in the shares of ING Vysya Bank from August 2011 to May 2013, Sebi found that Agrawal traded in the shares valuing over Rs5 lakh four times.

Upon buying and selling the shares of ING lead to change in the shareholding for more than Rs5 lakh in value on 17-18 January 2012 and 2-3 May 2013.

According to the PIT regulations, he was required to make disclosures about these transactions to ING and to BSE within two working days from the date of such dealing.

However, he failed to make the disclosure. “I conclude that the notice has violated the provisions of PIT Regulation," Sebi Adjudicating Officer Suresh Gupta said in an order dated 21 September.

Besides, Sebi said that Agrawal had entered into opposite transactions on three occasions.

“Upon entering into opposite transactions on three occasions. I conclude that the notice has acted in violation of the model code of conduct of PIT Regulations," Gupta added. Accordingly, a fine totalling Rs9 lakh was levied on Agrawal.

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