Securities and Exchange Board of India (SEBI) instituted fines totalling Rs 75 lakh on businessman Venugopal Dhoot and two other entities for engaging in insider trading in shares of Videocon Industries.
Dhoot along Electroparts (India) Pvt. Ltd. and Videocon Realty And Infrastructures Ltd have been asked to pay Rs 25 lakh each. Elecrtoparts was earlier known as Shree Dhoot Trading and Agencies.
SEBI had received two complaints in June and October 2017 with respect to the scrip of the Videocon Industries alleging price fall during the period of one year. The regulator said the unpublished price sensitive information (UPSI) was utilised from March 01, 2017, to May 09, 2017. The order noted, "...information disseminated to the public with respect to the classification of Videocon’s loan account as NPA by Dena Bank was likely to materially affect the price of Videocon Industries Limited".
SEBI noted that Venugopal Dhoot was the insider who traded on behalf of the two other promoters viz., Electroparts (India) Pvt. Ltd. and Videocon Realty And Infrastructures Ltd during the UPSI period.
