Two entities pay Rs 2.43 cr to settle insider trading case with Sebi

Quick Trading and Investment Advisors LLP and Vipul D Modi have settled with market regulator Sebi in case pertaining to insider trading after paying settlement amount totalling Rs 2.43 crore.

Quick Trading and Investment Advisors LLP and Vipul D Modi have settled with market regulator Sebi in case pertaining to alleged insider trading in the shares of Religare Enterprises after paying settlement amount totalling Rs 2.43 crore.

Individually, Vipul D Modi paid Rs 22.31 lakh towards settlement charges, while Quick Trading remitted Rs 2.21 crore which included Rs 1.27 crore as settlement amount, Rs 38.3 lakh as disgorgement and Rs 54.92 lakh as interest, according to an order passed on Thursday.

The order came after the entities approached Sebi to settle the alleged violations "without admitting or denying the findings" through a settlement order.

"The pending enforcement proceedings for the alleged defaults... are settled qua the applicants," the regulator said in a settlement order, adding that it will not initiate any other enforcement action against them for the default.

Sebi had conducted an investigation in the matter to ascertain as to whether certain entities have traded in the scrip of Religare Enterprises Limited (REL) during the period of October 2017 to May 2018 on the basis of unpublished price sensitive information (UPSI).

Based on the findings of the investigation, enforcement proceedings were initiated against the entities through a show-cause notice issued in July 2021 for the alleged violation of insider trading rules.

As per the show-cause notice, Modi was the designated partner of Quick Trading as well as the authorised signatory for trading in the account of Quick Trading.

In the show-cause notice, it was alleged that Modi had frequent communication for the purposes of investment in REL with one Siddharth Dinesh Mehta. Also, it was alleged that Mehta had access to certain UPSI, which included the information that Malvinder Mohan Singh and Shivinder Mohan Singh would be stepping down from the board of REL.

Further, Modi was alleged to have engaged in trading on behalf of Quick Trading in the scrip of REL while in possession of the UPSI. Further, it was alleged that Quick Trading had indirectly traded in the scrip of REL while in possession of UPSI, while Modi allegedly placed the order on behalf Quick Trading and accordingly, they were allegedly violated insider trading rules.

Last month, three persons, including Mehta, settled with Sebi a case related to alleged violation of insider trading rules after paying Rs 4.35 crore cumulatively towards settlement charges.