Sebi slaps fine on International Conveyors chairperson

Markets regulator Sebi slapped a penalty of Rs 49 lakh on International Conveyors chairperson Rajendra Kumar for violating insider trading norms.

The regulator conducted a probe into the trading of shares of International Conveyors Ltd from June to July 2009.

Following the probe, the regulator observed that Rajendra Kumar, who was the managing director of the company then, had traded in the shares of the company during the window closure period.

The trading window was closed on account of the declaration of annual financial results of the firm.

Being a managing director, Rajendra was 'insider' under PIT (Prohibition of Insider Trading) norms and thereby was barred from trading into the company's scrips during the window closure period.

However, Rajaendra traded 6,665 shares of the firm during the period, Sebi said.

By doing so, Rajendra violated code of conduct under PIT norms, the regulator said.

Accordingly, Sebi imposed a fine of Rs 49 lakh on Rajendra Kumar Dabriwala.

"The Code of Conduct which regulates trading in securities is a means to ensure that persons who have access to UPSI (Unpublished Price Sensitive Information) are aware of their responsibility to not trade in securities while in possession of UPSI," Sebi said in order dated July 31.