Adjudication Order in respect of Ms. Girija Kelath in the matter of Biocon Limited


Quick Summary
This adjudication order concerns Ms. Girija Kelath, a designated employee of Biocon Limited, and potential violations of SEBI's Prohibition of Insider Trading (PIT) Regulations, 2015. SEBI investigated Ms. Kelath's share transactions during a period when Biocon's trading window was closed. The company had informed designated employees, including Ms. Kelath, not to trade during this closure period.

Court :
SEBI

Brief :
UNDER SECTION 15-I OF SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 READ WITH RULE 5 OF SEBI (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING PENALTIES BY ADJUDICATING OFFICER) RULES, 1995.

Citation :
ADJUDICATION ORDERNo.: ORDER/AP/SK/2020-21/9141

BEFORE THE ADJUDICATING OFFICER
SECURITIES AND EXCHANGE BOARD OF INDIA
[ADJUDICATION ORDER No.: ORDER/AP/SK/2020-21/9141]

UNDER SECTION 15-I OF SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 READ WITH RULE 5 OF SEBI (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING PENALTIES BY ADJUDICATING OFFICER) RULES, 1995.
______________________________________________________________________________
In respect of:
Ms. Girija Kelath
20th KM Hosur Road,
Electronics City,
Bangalore – 560100.

In the matter of Biocon Limited

1. Biocon Limited (hereinafter referred as “Biocon” or “the company”), is a company having its shares listed on BSE Ltd. (‘BSE’) and National Stock Exchange of India Ltd. (‘NSE’). Securities and Exchange Board of India ("SEBI") conducted investigation to ascertain whether there was any disclosure and code of conduct violation of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (hereinafter referred to as “PIT Regulations”) by Ms. Girija Kelath (“Noticee”), a designated person of Biocon, with respect to her transactions during the period August 31, 2018 to October 01, 2018. Pursuant to the investigation, SEBI made the following observations:

a) The Company had closed the trading window from October 01, 2018 till October 27, 2018 (both days inclusive). The Compliance Officer of the Company vide email dated September 28, 2018 intimated the designated employees about the start date, end date of trading window closure as well as the date of opening of the trading window. The intimation, inter alia, stated the following:

  • Being a "Designated Person" under the subject code, you (including your immediate relatives) are hereby advised not to trade in Biocon equity shares during the trading window closure period …’
  • A Key summary of the Code’s provision that need to be complied with the designated employees has been stated in the email, which, inter alia, stated that ‘…deal in equity shares of Biocon Limited only when the trading window is open…’

To read more in details, find the enclosed file

FAQ :

Ms. Girija Kelath is a designated person of Biocon Limited, a company listed on the BSE and NSE.

The investigation concerned potential violations of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations).

SEBI investigated Ms. Kelath's transactions during the period of August 31, 2018, to October 01, 2018.

A trading window closure is a period, as determined by the company, during which designated employees and their immediate relatives are advised not to trade in the company's equity shares.

Biocon's trading window was closed from October 01, 2018, to October 27, 2018, inclusive.

The company's Compliance Officer informed designated employees via email that they, including their immediate relatives, were advised not to trade in Biocon equity shares during the trading window closure period.

 

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