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ZEE insider trading: Punit Goenka pays Rs 50 lakh to settle case - MMJC
Mr. Punit Goenka MD & CEO of ZEEL was alleged that he has failed to put in place adequate internal controls within the company to identify UPSI and failed to identify the said information as UPSI.
Makarand Joshi, founder Partner of #MMJC Commented – “So far, it has been observed that SEBI has been initiating legal actions on leak of UPSI, trading based on awareness of UPSI, violation of code of conduct, etc. This is first time an order has been released wherein the allegation was on failure of existence/ weakness of internal controls towards identification of UPSI.”
Reg. 9A (1) of Prohibition of Insider Trading laws, warrants Managing Director (MDs) and Chief Executive Officer (CEOs) of listed companies to frame internal controls to ensure compliance with its requirements.
Makarand Joshi – Partner #MMJC further commented that ‘UPSI being the nucleus for insider trading, SEBI has casted personal responsibility on the MDs and CEOs to devise adequate and effective systems inter alia for identification of UPSI. The Managing Directors and CEOs of Indian Inc. going forward will have to be more vigilant towards efficacy of such systems.’
Mr. Punit Goenka has settled instant proceedings by paying settlement amount of Rs. 50,70,000/-, without admitting or denying the findings of fact and conclusions of law, through a settlement order.