Settlement done between parties by exercising the power conferred under 15JB of SEBI ACT,1992 – the securities and exchange board of India
Applications were filed for separate settlement in terms of the SEBI (Settlement Proceedings) Regulations, 2018 for the settlement without admitting or denying the findings of fact and conclusions of law, through a settlement order, the pending enforcement proceedings initiated against the applicants for the alleged violation of Section 12A(a), (b) & (c) of the SEBI Act, 1992 read with Regulation 3(a), (b), (c),(d), 4(1) and 4(2)(q) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003.
In the notice to show cause Mr.Akash Singhania, the fund manager of Deutsche Mutual Fund (hereinafter referred to as ‘DMF’), is alleged to have known investment and impending orders of DMF and based on the same, is alleged to have had opened four trading accounts for front running, through his parents and it is alleged that they have access to those trading accounts and were trading ahead of the orders of DMF and thus acted in concert to front-run the trades of DMF and earned a profit of ₹1,42,21,775/-
According to the receipt of the applications, the authorized representatives of the applicants had a meeting with the Internal Committee of SEBI, and terms of the settlement were discussed and the High Powered Advisory Committee considered the settlement terms proposed by the applicants and recommended the case for settlement upon payment of ₹2,35,72,592and settlement amount along with a disgorgement of ₹1,42,21,775 wrongful gains with interest thereupon at the rate of 12% per annum amounting to ₹1,21,00,588.
The exercise of the powers conferred under Section 15JB of the Securities and Exchange Board of India Act, 1992 and in terms of Regulations 23 read with Regulation 28 of the Settlement Regulations and conditions were mentioned for applicants by the authority.
Order reviewed by Naveen sharma