Capital markets regulator Sebi on Tuesday imposed a penalty of Rs 1 lakh every on Coffee Day Enterprises and Coffee Day Trading for failing to make requisite disclosures pertaining to pledged and unpledged shares of Mindtree Ltd to the businesses and inventory exchanges.
Coffee Day Enterprises Limited (CDEL) is a listed firm and Coffee Day Trading Limited (CDTL) is a subsidiary of CDEL.
In its order, Sebi discovered that whole 6,81,66,778 shares of Mindtree have been pledged and 4,85,09,445 shares have been unpledged by CDEL and CDTL through the investigation interval — May 2015 to March 2018.
Under the SAST (Substantial Acquisition of Shares and Takeovers) guidelines, CDEL and CDTL have been underneath an obligation to reveal pledged and unpledged transactions to the corporate and inventory exchanges inside two working days of the disposal (pledged) /acquisition (unpledged) of shares exceeding 2 per cent of whole shareholding or voting rights within the firm.
Both firms have been holding greater than 5 per cent shares of Mindtree through the investigation interval.
“By non-disclosing pledged/unpledged transactions to the company and stock exchanges within two working days of the disposal (pledged) /acquisition (unpledged), noticees have violated the provisions of Sebi’s SAST Regulations,” the regulator mentioned.
In 4 separate orders, the regulator has levied a high-quality of Rs 1 lakh every on Taneja Vikas, Vishwa S R Kulkarni, Naveen Kumar Kurukuru and Sachin Machhindra Vyavahare for violating insider buying and selling norms within the matter of Mindtree.
The 4 individuals have been workers of Mindtree and had transacted within the firm’s scrip throughout January 2019 to March 2019. Further, they’d completed transactions aggregating to a traded worth in extra of Rs 10 lakh every over a calendar quarter.
They have been required to submit disclosures to the corporate inside two buying and selling days of transactions underneath the PIT (Prohibition of Insider Trading) guidelines. However, they did not make the disclosures.
The orders got here after Sebi obtained a letter from Mindtree in October 2018 informing the regulator concerning situations of violation of the code of conduct framed by the corporate underneath the provisions of insider buying and selling guidelines by a few of its workers and motion taken by the corporate pursuant to the identical.
Source: www.financialexpress.com”