The Securities and Exchange Board of India (SEBI) has fined Shivani Gupta, Sachin Gupta, Amit Garg and Quick Developers, the promoters of PC Jeweller, a total of Rs 8 crore for alleged unlawful gains by violating insider trading norms.
“A sum of Rs 6,17,60,184.13 shall be impounded jointly and severally, from Shivani Gupta, Sachin Gupta and Amit Garg, being the notional loss avoided on account of trades carried out in the trading accounts of Shivani Gupta, and a sum of Rs 2,13,23,161.64 shall be impounded jointly and severally, from Quick Developers Pvt. Limited and Amit Garg, being the notional loss avoided/gains made on account of trades carried out in the trading account of Quick Developers Pvt. Limited," read the order.
According to a release, the prima facie case pertains to late Padam Chand and Balram Garg allegedly communicating UPSI -- with regard to the proposal for buyback of equity shares and its subsequent withdrawal -- to Shivani, Sachin, Amit and QDPL. It was also alleged that they traded using the information.
Shivani and Sachin Gupta are respectively the daughter-in-law and son of late Padam Chand Gupta, who was the chairman of PC Jewellers. Sachin is the husband of Shivani and Amit is the nephew of Padam Chand. Balram Garg is the Managing Director and a Promoter of PC Jeweller. Garg held 50 percent stake in QDPL.
As per latest shareholding data with the BSE, Shivani and Sachin are promoters of the jewellery house.
SEBI also directed the restraining of the promoters from accessing the securities market and prohibiting them from buying, selling or otherwise dealing in securities for an appropriate period.
The latest ruling comes after a probe into the movement of share price of PC Jeweller during the April-July 2018 period. The watchdog looked at whether entities entities had traded in the scrip on the basis of Unpublished Price Sensitive Information (UPSI) pertaining to the company's buyback of shares.
No proceedings need to be initiated against Padam Chand, who passed on January 28, 2019, the order said.
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