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Business News/ Markets / Stock Markets/  SEBI penalises 2 persons for violating insider trading norms in Mindtree case
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SEBI penalises 2 persons for violating insider trading norms in Mindtree case

Through two separate orders, the SEBI imposed a fine of ₹1 lakh each on Uday Kiran Lingamaneni and Virat Kumar Yerramalla, who were employees of Mindtree at the time of violation

Sebi noted that Uday Kiran Lingamaneni was an employee of the company and had transacted in the scrip on multiple occasions, including during the investigation period (REUTERS)Premium
Sebi noted that Uday Kiran Lingamaneni was an employee of the company and had transacted in the scrip on multiple occasions, including during the investigation period (REUTERS)

Markets regulator Securities and Exchange Board of India (SEBI) on Thursday penalised two persons for violating insider trading norms with respect to shares of Mindtree Ltd.

Through two separate orders, the watchdog imposed a fine of 1 lakh each on Uday Kiran Lingamaneni and Virat Kumar Yerramalla, who were employees of Mindtree at the time of violation.

Sebi noted that Uday Kiran Lingamaneni was an employee of the company and had transacted in the scrip on multiple occasions, including during the investigation period. It was further observed that the noticee had done transactions aggregating to traded value in excess of 10,00,000 during the same period. (Noticees refer to Yerramalla and Lingamaneni.)

It was further observed that both had traded in excess of 10 lakh in the scrip during the period. However, they did not disclose about their respective transactions to the company as required under the insider trading norms.

Lingamaneni had executed three transactions worth 68.18 lakh during January-March 2019 period while Yerramalla had executed five transactions with the total traded value of 57.96 lakh, the orders noted.

The allegation that the noticees have violated PIT (Prohibition of Insider Trading) Regulations stands established due to failure to make the requisite disclosures pursuant to executing transactions in excess of 10 lakh during the investigation period, Sebi said in similar-worded orders.

Under the PIT Regulations,  certain entities of the company are required to file disclosures to the company within two trading days of transactions, if the value of the securities traded is more than 10 lakh whether in one transaction or a series of transactions over any calendar quarter.

Sebi received a letter in October 2018 from Mindtree informing it about instances of violation of the code of conduct framed by the company under the insider trading rules by two of its employees and action taken pursuant to the same.

Subsequently, the Sebi had started examining the matter.

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Published: 21 Oct 2021, 06:22 PM IST
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