Capital markets regulator Sebi has sent demand notices to industrialist Venugopal Dhoot and two other entities, asking them to pay nearly Rs 1.03 crore for insider trading activities in the shares of Videocon Industries.
The regulator has warned Venugopal Dhoot of arrest and attachment of his bank accounts and assets as well as other entities if they fail to make the payment within 15 days.
Apart from Dhoot, the other two entities who have been sent notices are Electroparts (India) Pvt Ltd and Videocon Realty and Infrastructures.
The demand notices came after these entities, including Dhoot, failed to pay the fine imposed on them by the Securities and Exchange Board of India (Sebi) in September 2021.
In the event of non-payment of dues, the market watchdog will recover the amount by attaching and selling the moveable and immovable properties of these entities, the regulator said in three separate notices.
Besides, they face attachment of their bank accounts and detention.
In September 2021, Sebi slapped penalties totalling Rs 75 lakh on industrialist Dhoot for insider trading in the securities of Videocon Industries.
Besides Dhoot, who was the managing director of the company, the markets watchdog slapped penalties on the company's two promoters Electroparts (India) and Videocon Realty and Infrastructures.
Electroparts (India), formerly known as Shree Dhoot Trading and Agencies.
The violations of insider trading norms happened in 2017.
Sebi found that Videocon Realty and Infrastructures, Electroparts (India), and Dhoot being insiders had executed market transactions while in possession of Unpublished Price Sensitive Information (UPSI).
The investigation in the scrip of Videocon was carried out in April-September 2017.
The information with respect to the classification of Videocon's loan account as NPA by Dena Bank was likely to materially affect the share prices of Videocon Industries and it was considered as UPSI.
The period of UPSI was March 1, 2017, to May 9, 2017.
The two promoter entities had either pledged their shares or transferred their shares of Videocon Industries to other entities during the UPSI period.
The authorised representative, Venugopal Dhoot was an insider and traded on behalf of the two promoter companies who were also insiders during the UPSI period.
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