According to reports, market regulator SEBI has disposed of proceedings against wind turbine maker Suzlon Energy, its chairman Tulsi Tanti and four other executives after they together paid Rs 12 lakh to settle charges related to alleged delay in amending insider trading norms.
Besides Tulsi R Tanti-founder chairman of Suzlon Energy – others who have entered into a consent order with SEBI are Girish R Tanti, V Raghuraman, Ashish Dhawan and Hemal A Kanuga.
Girish Tanti and Raghuraman are currently on the board of Suzlon. According to SEBI, Ashish Dhawan was a director with the company while Kanuga was a compliance officer.
All the six entities, including Suzlon, paid Rs 2 lakh each to settle the charges with Securities and Exchange Board of India (SEBI).
In six similarly-worded orders issued yesterday, SEBI said that it is disposing of “the aforesaid adjudication proceedings,” against the six entities.
As per norms regarding insider trading, all listed firms were required to frame a code of internal procedures, among others. This regulation was notified by SEBI in 2008.
However, the regulator alleged that Suzlon had amended its code of internal procedures and conduct for prevention of insider trading on February 4, 2011, after a delay of more than two years.
In this regard, adjudication proceedings were initiated against the six entities. While the proceedings were in progress, the company and its officials proposed a settlement under SEBI’S consent order mechanism, in August, last year.
In October, 2012, the entities revised their consent terms and offered to pay Rs 2 lakh each to settle the case.
Thereafter, SEBI’S High Powered Advisory Committee on Consent (HPAC) after deliberations, recommended the case for settlement on the payment of the amount.
This was also approved by panel of SEBI’s whole time members, following which the company and its officials remitted the amount earlier this month.
Sebi noted that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by the entities is found to be untrue.