Sebi settles case with individual on payment of over Rs three lakh

While the adjudicating proceedings were in progress, Chirumamilla had submitted an application with Sebi for settlement of the proceedings.

By: PTI | New Delhi | Published:June 5, 2017 8:53 pm

Market regulator Sebi has settled a case with one Veeranjaneyulu Chirumamilla related to alleged disclosure lapses in his share transactions of Covidh Technologies Ltd. Chirumamilla has paid over Rs 3.13 lakh towards settlement charges under the Sebi regulations. “The pending adjudication proceedings initiated against the noticee … are disposed of,” Securities and Exchange Board of India (Sebi) said in a settlement order issued Monday.

It was alleged that Chirumamilla failed to make requisite disclosures to the stock exchange(s) with respect to transactions done by him in the shares of Covidh Technologies (formerly known as Aptus Industries), though the shareholding pattern of the firm for the quarters ending March, June and September 2013 showed changes. While the adjudicating proceedings were in progress, Chirumamilla had submitted an application with Sebi for settlement of the proceedings.

While the adjudicating proceedings were in progress, Chirumamilla had submitted an application with Sebi for settlement of the proceedings.

The settlement terms proposed by Chirumamilla were considered by Sebi’s High Powered Advisory Committee (HPAC), which then recommended the case for settlement upon payment of Rs 3 lakh by the individual. The recommendation of HPAC was also accepted by the panel of whole time members of Sebi.

Last month, Chirumamilla paid the settlement amount of Rs 3 lakh as well as an interest of Rs 13,315 for delay in making payment. Accordingly, Sebi has disposed of the adjudication proceedings initiated against the individual.

However, Sebi said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by the firm is discovered to be untrue. However, Sebi said that if any representations made by Chirumamilla in the settlement proceedings is subsequently found to be untrue, enforcement actions including restoring or initiating the proceedings can be commenced against him.

However, Sebi said that if any representations made by Chirumamilla in the settlement proceedings is subsequently found to be untrue, enforcement actions including restoring or initiating the proceedings can be commenced against him.

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