Three Entities Settle Insider Trading Charges with SEBI in PNB Housing Finance Case.

NEW DELHI: On Tuesday, three individuals settled with the capital markets regulator, the Securities and Exchange Board of India (SEBI), concerning allegations of insider trading violations related to the scrip of PNB Housing Finance Ltd. The settlement was reached after a collective payment of Rs 1.56 crore.

The individuals involved in the settlement are Sidhant Chandalia, Naysar Parikh, and Ronak Narendra Parikh, as outlined in two separate orders issued by SEBI.

According to the settlement details, Sidhant Chandalia and Naysar Parikh each paid Rs 50.7 lakh as their portion of the settlement amount. Meanwhile, Ronak Narendra Parikh contributed Rs 45.5 lakh as a settlement charge and an additional Rs 8.98 lakh for the disgorgement of wrongful gains, including interest.

SEBI stated, “Given the acceptance of the settlement terms and the receipt of the settlement amount, the instant adjudication proceedings initiated against the Noticee(s) vide SCN (Show Cause Notice) are disposed of.”

The directives were issued following the submission of applications by the three individuals to SEBI, proposing to settle the ongoing proceedings against them “without admitting or denying the findings of facts” through settlement orders.

SEBI had initially launched adjudication proceedings against these individuals for their alleged violations of the Prohibition of Insider Trading (PIT) rules in connection with trading activities related to the scrip of PNB Housing Finance.

A show cause notice was issued to Sidhant Chandalia for allegedly communicating Unpublished Price Sensitive Information (UPSI) related to PNB Housing Finance.

Additionally, show cause notices were served to Naysar Parikh and Ronak Narendra Parikh, requiring them to explain why an inquiry should not be held and penalties imposed.

The notices were issued based on allegations that Naysar Parikh communicated UPSI while possessing it, and Ronak Narendra Parikh traded in the company’s scrip using the UPSI.