Bharti Airtel's promoter Indian Continent Investment pays Rs 2.17 lakh to settle case with Sebi
1. Indian Continent Investment failed to make disclosure of its shareholding in Bharti Airtel crossing 5% in April 2008 which prompted Sebi to initiate a probe
2. Sebi had initiated adjudication proceedings against Indian Continent Investment over the violation of regulations
Telecom company Bharti Airtel's promoter firm Indian Continent Investment on Wednesday settled its alleged insider trading case with capital markets regulator Sebi after paying Rs 2.17 lakh, PTI reported.
According to the news report, Indian Continent Investment had acquired 26,58,60,986 shares constituting 7% stake in the company during July 2007 to December 2010.
As a result, Indian Continent Investment's shareholding in Bharti Airtel crossed 5% on April 29, 2008, requiring it to make necessary disclosures under Prohibition of Insider Trading (PIT) Regulations.
However, it was alleged that the promoter company failed to make such disclosure, prompting Sebi to initiate a probe.
Sebi passed a settlement order on Wednesday in which it said it is disposing of "the adjudication proceedings initiated against the notice (Indian Continent Investment), cited the report.
The Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against Indian Continent Investment over the violation of regulations. Pending the adjudication proceedings, it had offered to settle the matter on payment of charges.
The report further stated that Sebi's High Powered Advisory Committee recommended the case for settlement on the payment of the amount. This was also approved by Sebi's panel of whole-time members, following which the company remitted a little over Rs 2.17 lakh.
Accordingly, Sebi has disposed of the adjudication proceedings initiated against the entity in the matter. It further said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by the company is found to be untrue, it added.
Indian Continent Investment continued to hold 6.65% stake in Bharti Airtel as on December 31, 2016.