SEBI receives Rs 3 crores in divi ‘s laboratories

SEBI receives Rs 3 crores in divi ‘s laboratories

SEBI receives over Rs 3 crore, in order to settle a case of suspected breach of insider trading standards in the scrip of Divi’s Laboratories Ltd , by eight people . The individuals have remitted Rs 96.68 lakh in addition to the settlement sum as a disgorgement of ill-gotten gains, The regulatory said in a settlement order dated Oct. 21. On July 10, Divi Laboratories made an announcement: The persons were classified as insiders who during the UPSI era had traded directly or indirectly in the company’s scrip, and the proceedings were thus launched.

They lodged mediation demands with the regulator awaiting the trial, without acknowledging or denying guilt. Taking into account the settlement terms suggested by the entities, SEBI’s high-powered advisory committee recommended each of the applications for settlement upon payment of an sum equal to Rs 3,09 crore for each of the applicants. The compensation sums were then remitted by the claimants and an additional sum of Rs 96.68 lakh was also remitted in the form of disgorgement of illnesses as per a statement.

As per a separate order, eight claimants settled a case concerning the acquisition of shares in Punjab Alkalies and Chemicals Ltd. with market regulator SEBI by paying Rs 3.77 lakh as the sum of the settlement. In March 2018, the applicants purchased those shares of the firm, acting as individuals in concert, raising their shareholding from 4.98% to 5.42%.

About Sebi

The Security and Exchange Board of India, is a regulatory agency for the supervision of the capital and security markets regulated by the Government of India. The Controller of Capital Issues was the regulating body to regulate the market that was regulated by the Capital Issues (Control) Act, 1947, before the Protection and Exchange Board of India.

It primarily regulates the issuers of securities, investors and the intermediaries of the market. Under its statutory authority, the Board draws up rules and laws, also issues judgments and orders in its judicial capacity and conducts inquiries within its executive limits. It serves as a barrier by creating a code of conduct and encouraging the healthy functioning of the stock exchange to prevent stock market-related malpractices. Initially, it did not have the power to regulate the stock exchange, but the Union Government granted legislative powers in 1992 by sebi act.

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