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MUMBAI : The Securities and Exchange Board of India (Sebi) has imposed a penalty of 1 lakh each on six employees of Titan Company Ltd for non-compliance of the market regulator's Prohibition of Insider Trading (PIT) regulations.

According to Sebi’s order, the six employees of Titan include Siva Kumar C, Hamendra Sharma, Chandrakant Kalauni, Mathalai Manikandan, Sarath Kumar Mulugu, and Mahesh S. The case pertains to the period 2018-19, as per Sebi’s order.

This comes after the company informed Sebi about the contravention of Sebi’s PIT, regulations and company’s code of conduct for prevention of insider trading by its employees.

Following which the markets regulator carried out an investigation in the stock of Titan, wherein it witnessed several non-compliances of its PIT Regulations during the period 1 April, 2018 to 31 March, 2019.

Sebi found that, on multiple occasions, the total value traded in securities by all the mentioned six employees exceeded 10 Lakhs. For which the employees did not make any disclosures as per the company’s code of conduct.

As per Sebi’s section 7 (2)PIT Regulations, it is clearly mandated that every promoter, employee and director of every company shall disclose to the company the number of such securities acquired or disposed of within two trading days of such transaction if the value of the securities traded, whether in one transaction or a series of transactions over any calendar quarter, aggregates to a traded value in excess of ten lakh rupees or such other value as may be specified.

However, even the company confirmed that no such disclosures were made by these 6 employees.

Sebi noted “In terms of Regulation 7(2)(a) of PIT Regulations, being employees of the company, they were required to make disclosures to Titan, for each of the transactions within 2 working days. However, there is no evidence available on record to show that employees had made any disclosures in terms of the aforesaid regulation for the aforesaid transactions".

Sebi has directed the employees to pay the penalty amount of 1 lakh each within 45 days.

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