SEBI Penalty: Rs 25L Fine, 1-Year Market Ban for Insider Trading
The Securities and Exchange Board of India (SEBI) has recently taken action against two individuals for insider trading in Jagsonpal Pharmaceuticals’ shares. This action comes after an analysis by the National Stock Exchange (NSE) flagged patterns suggesting insider trading based on undisclosed price-sensitive information.
In a recent order, SEBI imposed a fine of Rs 25 lakh on the two individuals involved, Maneesh Kumar Jain and S V Subha Rao, who is the former Chief Finance Officer of Jagsonpal Pharmaceuticals Ltd. Specifically, Jain was fined Rs 15 lakh, while Rao was fined Rs 10 lakh. Additionally, Jain has been directed to disgorge Rs 31.39 lakh along with 12% interest per annum from February 22, 2022, until the amount is deposited.
SEBI’s order highlighted that Rao, as an “insider,” had shared confidential price-sensitive information with Jain, leading to the violation. As a result, both individuals have been barred from the securities markets for one year as a consequence of their actions. This serves as a reminder of the importance of maintaining ethical and legal trading practices to ensure a fair and transparent market for all investors.
