In a recent development, Amit Manchanda, who formerly served as the Vice President-Legal and Compliance Officer at Radico Khaitan, has found himself at the center of controversy, being fined a substantial amount of Rs 5 lakh for contravening insider trading regulations. This penalty, imposed by the Securities and Exchange Board of India (Sebi), underscores the gravity of the breach committed by Manchanda.
The Sebi order, issued on March 20, pointedly highlighted Manchanda’s violation of Regulation 9(3) of the Prevention of Insider Trading (PIT) Regulations, 2015. According to the adjudicating officer, Manchanda’s failure to diligently monitor trades for compliance with the company’s code of conduct and to effectively administer the PIT Regulations led to a significant number of trades being carried out by designated individuals and their relatives, thereby running afoul of PIT Regulation.
In light of these serious infractions, the adjudicating officer expressed the necessity of protecting the interests of all investors in the securities market. Consequently, the officer deemed it fitting to levy a penalty commensurate with the nature of the violation. This penalty not only serves as a deterrent to Manchanda but also sends a clear message to others, emphasizing the imperative of adhering to regulatory norms and upholding the integrity of the securities market.
The Sebi order’s pronouncement underscores the regulatory body’s unwavering commitment to maintaining fairness, transparency, and investor protection in the Indian securities market. It serves as a stark reminder to all market participants, especially those in positions of authority and responsibility, of the need for strict adherence to insider trading regulations and ethical conduct in all financial dealings.
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Sources: moneycontrol.com