Mumbai: Market regulator SEBI Thursday dismissed allegations of insider trading against an employee of ITC Ltd saying they could not be established.
"Considering the facts and circumstances and the material made available on record, the violation of...Prohibition of Insider Trading Regulations could not be established against A K Chowdhury... Accordingly, the present adjudication proceedings are disposed of," SEBI said in an order.
It was alleged that Chowdhury, who was employed as head -operations in the Education and Stationery Products Strategic Business Unit at ITC, had sold 5,000 shares of the company in April, 2013 for Rs 15.50 lakh during the period of closure of trading window which was not in adherence with the model code of conduct of the firm.
Further, it was alleged that Chowdhury, being a designated officer of the company, had failed to disclose about the change in his shareholding, which took place by virtue of this share sale.
Chowdhury, who was not a director of ITC, sold these shares upon exercise of the stock options granted to him.
In an order SEBI Adjudicating Officer D Ravi Kumar said: "...He (Chowdhury) is very low in the chain of management and will have no interaction with the Board of Directors or would be a person on whose directions or instructions the Board of Directors or any Directors were accustomed to act.
"He was involved solely with the manufacturing of products for the relevant Strategic Business Unit (SBU) and was not even be said to have the management of the relevant SBU... Noticee had no role to play in the governance and management of the company."
