Sebi slaps fines of Rs 39 lakh on KTPL, four individuals

NEW DELHI: Markets regulator Sebi has imposed penalties totalling Rs 39 lakh on Kavveri Telecom Products Ltd and four individuals for various violations, including disclosure lapses.

The individuals fined are C S Reddy, Uma Reddy, R H Kasturi and L Nicholas, as per an order.

An investigation was conducted into the shares of Kavveri Telecom Products Ltd (KTPL) for the August 1, 2012 to November 5, 2012 period.

It was found that C S Reddy and R H Kasturi had traded in the shares of the company on September 5, 2012 while in possession of UPSI (Unpublished Price Sensitive Information) and during a trading window closure period.

At that time, C S Reddy, R H Kasturi and Nicholas were executive directors of the company.

According to the order, they failed to bring it to the knowledge of the company's board of directors and did not take any action in terms of their powers/ obligation under the model code of conduct.

Among others, Sebi said that KTPL as well as C S Reddy and Kasturi during their directorship on multiple occasions failed to make relevant disclosures.

"KTPL, Noticee 2 (C S Reddy) and Noticee 3 (R H Kasturi) have on multiple occasions failed to make relevant disclosures/ made delayed disclosures under PIT (Prohibition of Insider Trading) Regulations, 1992 and SAST (Substantial Acquisition of Shares and Takeovers) Regulations, 2011," Securities and Exchange Board of India (Sebi) said in the order, dated July 31.

C S Reddy, Uma Reddy and R H Kasturi are promoters of the company.