The Securities and Exchange Board of India (Sebi) imposed a penalty of Rs 2 lakh each on Gautam Dutta, CEO—operations of PVR Ltd, NC Gupta, company secretary of PVR Ltd, and Pramod Arora, chief development officer of PVR Ltd, for non-disclosure of their impugned trades to PVR Ltd under SEBI (Prohibition of Insider Trading) Regulations and for failing to obtain pre-clearance of trades in the shares of the company.
The order, passed by adjudicating officer (AO) N Hariharan on Friday, noted that Dutta and Arora also traded during the trading window closure period despite receiving information from the company regarding closure of trading window, in violation of Clause 3.2 and 3.3 of model code of conduct for prevention of insider trading for listed companies.
According to the Sebi order, the trades in the shares of the company relate to the period between April 1, 2014 and March 31, 2017 (“investigation period”).
The AO, however, also took note of the submission of the noticees that no unlawful gains or avoidance of losses is alleged to have been made by them due to failure to disclose, obtain pre-clearance or trade during trading window closure.
