Settlement Order in respect Mr. Praveen Lingamneni and 7 others in the matter of Divis Laboratories Ltd

SO / EFD-2 / SD /356/ OCTOBER / 2020

BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA

SETTLEMENT ORDER
in Settlement Applications bearing Nos.
 

1. 4150/2020– Praveen Lingamneni [PAN : AAWPL9203A]
2. 4151/2020– L Kishore Babu [PAN : AAFPL6754R]
3. 4152/2020– Nagesh Lingamneni [PAN : ABJPL5533F]
4. 4153/2020– Sri Lakshmi Lingamneni [PAN : ACZPL7827K]
5. 4154/2020– Radhika Dronavali [PAN : AKGPR0018R]
6. 4155/2020– D. Srinivas Rao [PAN : AEXPD7683R]
7. 4156/2020– Gopichand Lingamneni [PAN : ABPPL4081Q]
8. 4157/2020- Pushpa Latha Devi [PAN : AEVPL9622G]

in the matter of Divis Laboratories Ltd.

1. Eight applicants (referred to above and hereinafter referred to as the “applicants”) filed settlement applications in terms of the SEBI (Settlement Proceedings) Regulations, 2018 (hereinafter referred to as the “Settlement Regulations”) proposing to settle, without admitting or denying the findings of fact and conclusions of law, through a settlement order, the pending proceedings initiated against the applicants under Sections 11(1), 11(4), 11B(1), 11B(2) and 11(4A) of the SEBI Act, 1992 vide impounding order cum Show Cause Notice dated July 01, 2020, for the violation of Regulations 3(1), 4(1) of the (Prohibition of Insider Trading) Regulations, 2015, Regulation 7(2) (a) read with Regulation 6(2) of the SEBI (Prohibition of Insider Trading) Regulations, 2015 and Clause 6 of the Minimum Standards for Code of Conduct as specified in Schedule B read with Regulation 9(1) of the SEBI (PIT) Regulations, 2015.

2. It was observed during investigation that Divis Laboratories Ltd. had made an announcement during market hours on July 10, 2017 on the exchange platform titled ‘USFDA to Lift Import Alert 99-32’ on its Unit-II at Visakhapatnam’. The information was material in nature and fell within the definition of Unpublished Price Sensitive Information (UPSI). The applicants were identified as insiders who had directly or indirectly traded in the scrip of Divis Laboratories Ltd. during the UPSI period i.e. during July 07, 2017 to July 10, 2017.

3. Accordingly, the proceedings referred to in paragraph 1 were initiated against the applicants. The applicants have filed the settlement applications in respect of the aforesaid enforcement proceedings.

To konow more in details find the attachment file