SEBI fines Aadhaar Ventures, its directors for violating market norms

Aadhaar Ventures India Ltd (AVIL) and its directors have been fined by the Securities Exchange Board of India (SEBI) for violating insider trading rules and listing conditions. According to a Mint report, SEBI has imposed a fine of Rs 10 lakh for disclosure lapses on Aadhaar Ventures India Ltd (AVIL), its directors Somabhai Sunderbhai Meena, Jils Raichand Madan, and Jyoti Munver (to be paid jointly and severally). SEBI has also levied a fine of Rs 5 lakh of AVIL and Meena (jointly and severally) for not following insider trading norms. A penalty of Rs 5 lakh has been imposed on AVIL for violating Section 23E in the Securities Contracts (Regulation) Act. But the payment of this penalty would be subject to the outcome of SEBI’s appeal before the Supreme Court. According to the ruling posted on the SEBI’s website, “The noticees shall remit/pay the said amount of penalty within 45 days of receipt of this order either by way of demand draft in favour of ‘SEBI -Penalties Remittable to Government of India’, payable at Mumbai, OR through online payment facility available on the website of SEBI”. What was the case? According to documents on the SEBI’s website, the Board had earlier conducted an investigation in the alleged price manipulation in AVIL’s scrip. The Board also stated that many corporate announcements made by Aadhaar Ventures during July-August 2014 “regarding acquisition of a company in Africa and setting up an overseas subsidiary in Singapore” did not materialise. So, SEBI decided to launch another investigation for the period of July-September 2014. During the course of the investigation, it was revealed that while Aadhaar Ventures had made corporate announcements about setting up an overseas subsidiary in Singapore and the acquisition of a company in South Africa, it did not provide the required information to the BSE, despite several reminders. When the projects did not materialise, the company failed to disclose the information to the stock exchange, violating disclosure lapses. Furthermore, as the compliance officer of AVIL, Munver failed to ensure that the company had complied with continuous disclosure requirements, thus violating the Prohibition of Insider Trading rules. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.