Satyam Computer Services case: SEBI fines head of investor relations for insider buying and selling

New Delhi, August 25

Markets regulator SEBI on Tuesday levied a effective of Rs 10 lakh on Satyam Computer Services Limited’s head of investor relations for indulging in insider buying and selling within the agency’s scrip.

The head of investor relations of Satyam Computer Services Limited (SCSL), T AN Murti, violated the Prohibition of Insider Trading norms, markets watchdog stated in an order.

As per a probe carried out by SEBI, Murti dealt in shares of SCSL whereas in possession of unpublished worth delicate data (UPSI).

The regulator had carried out investigation pertaining to points referring to insider buying and selling within the scrip of SCSL throughout the monetary 12 months 2008-09.

It was discovered that Murti was one of many key personnel of SCSL who acquired to know concerning the announcement of the acquisition of Maytas Infra Limited (MIL) and Maytas Properties Limited (MPL) prematurely and traded instantly earlier than the announcement of the acquisition.

He bought 14,500 shares on December 15, 2008, after which the holding of Murti in SCSL diminished to three,000 shares.

“It has been established that the noticee (Murti) was aware that there was a proposal that SCSL would acquire MPL and MIL, and the said proposal was being put to the board for its consideration on December 16, 2008. He became aware of this fact latest by December 14, 2008, and traded on December 15, 2008. Accordingly, the noticee was guilty of trading in the scrip of SCSL while in possession of UPSI,” the SEBI stated.

The SEBI additional stated that Murti’s buying and selling in SCSL shares confirmed “reckless disregard to the regulations framed by SEBI to prevent the misuse of insider information”. Consequently, a financial penalty of Rs 10 lakh was imposed on Murti. PTI

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