SEBI slams fine of Rs. 1 cr for Non-Compliance

SEBI imposes a total fine of Rs. 1 crore, including Rs. 5 lakh on Compliance officer of  Suzlon Energy, for failure to disclose the price sensitive  information required  under the insider trading regulations for several occassions.

The violations made by the company pertains to, failure in making certain corporate announcements received by them. The regulator said, while looking into the announcements made during the period from April 1, 2006 to March 31, 2009. “It was alleged that around 18.8 per cent of the order received by Noticee 1 (Suzlon), which were informed by way of various corporate announcements were either not opted for by the clients or were not executed. It was further alleged that no specific corporate announcement was made by the noticees to inform stakeholders about the same.

With regard to Kanuga, Sebi said that being the compliance officer of Suzlon Energy, it was his duty to ensure that the company complies with all the legal obligations.

“Noticee 4 (Kanuga) failed to do its duty on three occasions,” the regulator said.

SEBI noted that “the investigation did not bring out the disproportionate gain or unfair advantages to the Noticees and loss caused to investors as a result of non-disclosure of truncation of order.They failed to make the disclosure on more than one occasion, hence it can be said, it is repetitive in nature.

Click here to read SEBI’s Adjudication order in respect of Suzlon Energy Limited


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eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

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