Sebi fines 2 Mindtree employees for disclosure lapses

Markets regulator Sebi on Tuesday levied monetary fine on two employees of Mindtree Ltd for failing to make requisite disclosures and thereby violating insider trading norms.

The employees -- Mahendra Gautam and Ankit Kumar -- are facing fine of Rs 1 lakh each, as per two separate orders.

They violated Prohibition of Insider Trading (PIT) norms due to their failure to make the requisite disclosures within the stipulated time pursuant to executing transactions in Mindtree's shares.

PIT norms provide that disclosures be submitted to the company within two trading days of the transactions if the value of the securities traded aggregates to a traded value in excess of Rs 10 lakh whether in one transaction or a series of transactions, over any calendar quarter.

Gautam and Kumar were employees of the company had transacted in the scrip of the company on multiple occasions but failed to make disclosures, the investigation revealed.

"The requirement to submit disclosures under the PIT Regulations are sacrosanct as they enable the public to make an informed investment decision in a timely manner," Sebi said in similarly worded separate orders.

The investigation was initiated by Sebi after it received a letter from Mindtree Ltd informing about instances of violation of the code of conduct framed by the company under PIT norms, by two of its employees and action taken by them.

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