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TMI Blog2023 (10) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... ge and the National Stock Exchange of India Limited - corporate announcement revealed that the Company during its second quarter had achieved a new sales volume which was up by 5.6% as compared to the preceding quarter - appellant as urged that the real estate operational data was not a price sensitive information - HELD THAT:- Corporate announcement regarding update on the real estate operation of the Company was a price sensitive information. UPSI has been defined under Regulation 2(1)(n) which means any information that is not generally available and which upon becoming generally available is likely the materially affect the price of the securities. In the instant case, the real estate operational update were part of the financial r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adav, Mr. Abhay Chauhan, Advocates i/b The Law Point ORDER PER: JUSTICE TARUN AGARWALA, PRESIDING OFFICER 1. The present appeal has been filed questioning the veracity and legality of the order dated October 28, 2022 passed by the Adjudicating Officer ( AO for convenience) of the Securities and Exchange Board of India ( SEBI for convenience) imposing a penalty of Rs. 10 lakhs under Section 15G(i) of the SEBI Act for insider trading in the scrip of the Company known as Sobha Limited ( the Company for convenience). 2. The facts leading to the filing of the present appeal is, that the investigation was conducted in the scrip of the Company for the period from 01.09.2017 to 30.11.2017, pursuant to which a show cause notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion ( UPSI ) period but contended that he had taken pre-clearance from the Compliance Officer and also made the necessary disclosures regarding its purchases under the PIT Regulations and, therefore, he has not committed any violation of the PIT Regulations or of the SEBI Act. The appellant further contended that he has not sold the shares which he has purchased and therefore cannot be found guilty of the charge of trading while in possession of inside information. 4. The AO after considering the material evidence on record held that the real estate operation update was an UPSI as per Regulation 2(1)(n) of the PIT Regulations. The appellant was also an insider as per Regulation 2(1)(g) of the PIT Regulations. The AO also found that he wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also a Member of the Audit Committee and was aware of the affairs of the Company. The corporate announcement regarding update on the real estate operation of the Company was announced on 06.10.2017 but the appellant in his capacity of being the Vice Chairman and Managing Director was obviously aware prior to the announcement of the sales volume and total sales value of the Company. This increase in the sales volume was a price sensitive information and the appellant was privy to this information. Thus, the appellant was not only a connected person but was also an insider in terms of the Regulation 2(1)(g) of the PIT Regulations. 8. The corporate announcement regarding update on the real estate operation of the Company was a price sen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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