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Three individuals have agreed to pay more than Rs 1.55 crore to settle insider trading allegations involving PNB Housing Finance Ltd. The Securities and Exchange Board of India (SEBI) issued two settlement orders on August 13, detailing the financial penalties for the involved parties: Sidhant Chandalia, Naysar Parikh, and Ronak Narendra Parikh.
Sidhant Chandalia and Naysar Parikh each face a settlement amount of Rs 50.7 lakh, while Ronak Narendra Parikh must pay Rs 54.48 lakh. The breakdown of Ronak Narendra Parikh’s settlement includes Rs 45.5 lakh plus disgorgement of wrongful gains amounting to Rs 6.83 lakh and a 12 per cent simple interest, totalling Rs 8.98 lakh.
The legal action against Chandalia began with a show cause notice (SCN) dated June 22, 2023, followed by a supplementary SCN on July 28, 2023. Chandalia was required to clarify why he should not be inquired and why he should not face penalties under Section 15G of the SEBI Act for purportedly sharing unpublished price-sensitive information (UPSI), which reportedly violated Section 12A(d) and 12A(e) of the SEBI Act. Chandalia opted to settle the matter without admitting or denying the findings by applying on July 31, 2023.
Naysar Parikh and Ronak Narendra Parikh received similar notices on the same dates. Naysar Parikh was questioned about communicating UPSI while in possession of such information, and Ronak Narendra Parikh was scrutinized for trading based on UPSI. Both individuals filed their settlement applications on July 14, 2023.
Settlement proceedings offer a means for parties to resolve allegations without admitting to or denying the charges, emphasizing SEBI’s commitment to enforcing transparency and compliance in the securities market.