Zee Entertainment Enterprise Ltd (ZEEL) on Wednesday said its Independent Director Manish Chokhani has paid a fine of ₹8.20 lakh for violation of insider trading norms.
The company has transferred the said amount to the Investor Protection and Education Fund (IPEF) administered by market regulator Sebi, ZEEL said in a regulatory filing.
“The said Designated Person (Mr. Chokhani) has remitted a fine of ₹8.20 lakh to the Company’s account and the Company in turn has transferred the said amount to IPEF administered by SEBI, it said.
Mr. Chokhani had acquired one lakh equity shares of ZEEL at an average price of ₹200 in August this year.
The shares were purchased in the name of a partnership firm on August 19, 2020 — one day after publication of Q1 2020 financial results but before the trading window could open as scheduled after 48 hours of publication of results.
“The DP has been penalised by asking him to remit the notional profit gained by him (i.e. the difference between the closing price of the shares on the date of the Audit Committee meeting i.e. October 5, 2020 and the price on August 19, 2020, the date when he bought the shares during the closed period without obtaining pre-clearance from the Compliance Officer,” it said.
The purchase was made on the mistaken belief that the trading window is automatically reopened, and also without applying for pre-clearance, it added.
“Since the DP had himself forthwith intimated the mistake to the Company on August 19, 2020 and provided his sincere apologies therefore, the same was noted and the DP was cautioned to be more careful in future,” it said.
