Satyam Computer Services case: SEBI fines head of investor relations for insider trading
Markets regulator SEBI on Tuesday levied a fine of Rs 10 lakh on Satyam Computer Services Limited’s head of investor relations for indulging in insider trading in the firm’s scrip.
The head of investor relations of Satyam Computer Services Limited (SCSL), T AN Murti, violated the Prohibition of Insider Trading norms, markets watchdog said in an order.
As per a probe carried out by SEBI, Murti dealt in shares of SCSL while in possession of unpublished price sensitive information (UPSI).
The regulator had conducted investigations pertaining to issues relating to insider trading in the scrip of SCSL during the financial year 2008-09.
It was found that Murti was one of the key personnel of SCSL who got to know about the announcement of the acquisition of Maytas Infra Limited (MIL) and Maytas Properties Limited (MPL) in advance and traded immediately before the announcement of the acquisition.
He sold 14,500 shares on December 15, 2008, after which the holding of Murti in SCSL reduced to 3,000 shares.
“It has been established that the noticee (Murti) was aware that there was a proposal that SCSL would acquire MPL and MIL, and the said proposal was being put to the board for its consideration on December 16, 2008. He became aware of this fact latest by December 14, 2008, and traded on December 15, 2008. Accordingly, the noticee was guilty of trading in the scrip of SCSL while in possession of UPSI,” the SEBI said.
The SEBI further said that Murti’s trading in SCSL shares showed “reckless disregard to the regulations framed by SEBI to prevent the misuse of insider information”. Consequently, a monetary penalty of Rs 10 lakh was imposed on Murti.