Titan employee settles insider trading case with Sebi, pays Rs 30.44 lakh

An employee of Titan has settled insider trading case with Sebi by paying Rs 30.44 lakh as settlement charges.

Sebi had received a complaint on November 13, 2018 from Titan that one of its designated employee Ajoy Chawla has traded in the shares of the company when the trading window was closed for declaration of quarterly results.

The trading window was closed during the period September 23, 2018 to November 12, 2018, for the purpose of declaration of financial results for the quarter and half year ended September 30, 2018.

The company informed Sebi that Mr Chawla had traded in the shares of the company on three trading days and executed contra trades. The contra trades were in excess of Rs 10 lakh and Mr Chawla did not make necessary disclosures.

Insider trading rules mandate designated persons and their immediate relatives should not trade in securities when the trading window is closed. Also, rules say that the code of conduct should specify the period, which in any event should not be less than six months, within which a designated person who is permitted to trade should not execute a contra trade.