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SEBI slaps Rs 18.5 lakh fine on individual for violating insider trading, disclosure norms

In addition, he was also indulged in fraudulent trading activities in the shares of Incap.

April 21, 2020 / 02:22 PM IST

Markets regulator Sebi has imposed a penalty of Rs 18.5 lakh on Abhay Javlekar for violating insider trading norms and disclosure lapses, among others, in the matter of Incap Financial Services. In addition, he was also indulged in fraudulent trading activities in the shares of Incap.

The regulator had conducted a probe between December 2010 and February 2011 in the shares of Incap.

During investigation, Sebi found that Javlekar was 'person acting in concert' with the acquirer, Arvind Goyal, for acquiring shares in Incap and had the obligation of making an open offer but had failed to make an open offer while 'person acting in concert' (PAC).

Thus, failed to comply with the norms of SAST (Substantial Acquisition of Shares and Takeovers) regulations.

It was further revealed that Javlekar has failed to make the disclosure for change in shareholding as PAC, thereby violating the insider trading norms, Sebi said.


Also, he was indulged into fraudulent trading and created the false appearance of trading in the scrip of Incap and manipulated the trading volumes through synchronised trades, self-trades and reversal of trades and violated the norms of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices).

Hence, a fine of Rs 18.5 lakh has been levied on Javlekar for not complying with the insider trading, disclosure, and fraudulent trading norms, Sebi said in its order on Monday.

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first published: Apr 21, 2020 02:20 pm

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