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Suzlon settles Sebi dispute

Mumbai, Jan. 30: The Securities and Exchange Board of India has disposed of proceedings against Suzlon Energy, its chairman Tulsi Tanti and four other executives through the consent route.

The company and its officials collectively paid Rs 12 lakh to settle the charges related to an alleged delay in amending insider trading norms.

Besides founder chairman Tulsi R. Tanti, others who have entered into a settlement with the market regulator include Girish R. Tanti, V. Raghuraman, Ashish Dhawan and Hemal A. Kanuga. All of them, including Suzlon, paid Rs 2 lakh each.

Through the consent route, Sebi settles disputes with entities and individuals who have to pay a penalty without admission or denial of guilt.

The market regulator issued six orders on Tuesday stating that it was disposing of the adjudication proceedings against the entities.

All listed companies are required to frame a code of internal procedures and conduct for prevention of insider trading in line with the amendments in Sebi (Prohibition of Insider Trading) Regulations, 1992. This was notified on November 19, 2008 by the market regulator. However, Sebi alleged that Suzlon had made the required amendments on 4 February 2011, after a delay of more than two years.

“The investigation (by Sebi) revealed that this huge delay occurred in spite of Suzlon’s board of directors being aware about the changes in PIT regulations. The board unduly delayed the implementation of revised code of conduct by deferring the matter when it was discussed in the board meetings dated May 29, 2010 and August 13, 2010 and the code was subsequently passed in the board meeting dated February 4, 2011,” Sebi said.

 
 
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