Kamal Gianchandani, CEO of PVR Pictures Ltd., has settled with markets regulator SEBI a case related to alleged violations of insider trading rules. Kamal has had to pay nearly Rs. 31 lakh for insider trading in PVR shares.
Kamal Gianchandani approached the Securities and Exchange Board of India to settle the adjudication proceedings initiated against him, through a settlement order. An alleged violator pays money to SEBI under the settlement order to settle the case without admitting or denying the violation.
The show cause notice to Kamal Gianchandani was issued by SEBI on September 9, 2021, which marked the initiation of the adjudication proceedings against Gianchandani. The investigation period was April 2014 to March 2017. Kamal filed a settlement application with SEBI in October last year. The settlement order of SEBI, dated July 28, 2022, said that “the adjudication proceedings initiated against the applicant viz. Kamal Gianchandani under the aforesaid SCN (show cause notice) dated September 9, 2021 are hereby disposed off”. The exact amount of settlement was Rs. 30.74 lakh which Gianchandani paid SEBI.
The SCN alleged that Kamal had executed eight transactions during October 2015-16 without obtaining pre-clearance for his trades from the board of directors of PVR Ltd. In doing so, he allegedly violated rules prescribed under provisions of insider trading. Furthermore, some trades executed by Kamal Gianchandani were not disclosed to the company, as required by the rules.