Description

SEBI order under Sections 11(1), 11(4), 11B(1) and 11B(2) read with Section 15G against Mr. Vinod Bahety, Mr. Tarun Jain, M/s Rajtaru Enterprises, and MC Jain Infoservices Pvt Ltd for alleged insider trading in Adani Green Energy Limited shares.

Summary

SEBI has issued an order under Sections 11(1), 11(4), 11B(1) and 11B(2) read with Section 15G of the SEBI Act, 1992 in the matter of alleged insider trading in the scrip of Adani Green Energy Limited. The order is against four noticees: Mr. Vinod Bahety (PAN: AGBPB4230A), Mr. Tarun Jain (PAN: AACPJ9089J), M/s Rajtaru Enterprises (PAN: AALFR5789G), and MC Jain Infoservices Pvt Ltd (PAN: AACCR8509E). The proceedings relate to alleged violations of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015.

Key Points

  • Order issued against four entities for alleged insider trading in Adani Green Energy Limited shares
  • Proceedings initiated under PIT Regulations, 2015
  • Case involves allegations of trading based on unpublished price sensitive information (UPSI)
  • Order emphasizes SEBI’s role in investor protection and maintaining level playing field in securities markets
  • Proceedings highlight challenges in investigating insider trading cases due to human ingenuity and technology

Regulatory Framework

The order is based on:

  • Section 11(2)(g) of SEBI Act: empowers SEBI to prohibit insider trading
  • Section 12A of SEBI Act: provisions for prohibiting insider trading
  • SEBI (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations)
  • Sections 11(1), 11(4), 11B(1), 11B(2) and 15G of SEBI Act for enforcement action

Noticees

  1. Mr. Vinod Bahety (PAN: AGBPB4230A)
  2. Mr. Tarun Jain (PAN: AACPJ9089J)
  3. M/s Rajtaru Enterprises (PAN: AALFR5789G)
  4. MC Jain Infoservices Pvt Ltd (PAN: AACCR8509E)

Alleged Violations

  • Trading in shares of Adani Green Energy Limited while in possession of unpublished price sensitive information
  • Communication of alleged UPSI
  • Violations of PIT Regulations involving insiders or persons privy to company decisions
  • Trading not based on level playing field, detrimental to ordinary shareholders and general public
  • Directors and persons privy to company decisions have advantageous position over ordinary shareholders
  • Such information can be used to make gains by buying shares anticipating price rise or to protect against losses by selling before price falls
  • PIT Regulations framed to curb such practices and ensure investor protection
  • Order emphasizes SEBI Act’s purpose: investor protection, market development, and ensuring level playing field

Impact Assessment

This enforcement action demonstrates SEBI’s continued focus on curbing insider trading practices in major listed companies. The involvement of Adani Green Energy Limited, a prominent renewable energy company, adds significance to this case. The order reinforces the importance of compliance with PIT Regulations and serves as a deterrent against misuse of unpublished price sensitive information for trading purposes.

Impact Justification

High-profile enforcement action involving alleged insider trading in a major listed company (Adani Green Energy Limited). Order issued under multiple sections of SEBI Act indicating serious violations of PIT Regulations.