SEBI imposes a penalty of Rs 30 lakh on Company Insiders of Bajaj Auto Ltd.
In violations of the SEBI (Prohibition of Insider Trading) Regulations, 2015, two insiders of Bajaj Auto Ltd. circulated the “Unpublished Price Sensitive Information” (UPSI) of fourth-quarter financial results of 2016-17 of the company through WhatsApp messages.
SEBI in its investigation found that the said messages about the financial results were circulated before the official announcement made by the company. As per the Insider Trading Regulations, any person who is in possession of UPSI is regarded as an insider. Any disclosure of UPSI by the insider and subsequent trading of the company’s shares on the basis of that information is illegal. Therefore, SEBI imposed a penalty of Rs 30 lakh on two persons (insiders) for circulating unpublished price sensitive information pertaining to quarterly results of Bajaj Auto through WhatsApp before official announcement by the company.
