SEBI Levies ₹25 Lakh Fine On Two Individuals For Insider Trading Scam

New Delhi: Capital markets regulator Sebi on Tuesday levied a fine of Rs 25 lakh on two individuals for indulging in insider trading in the shares of Nucleus Software Exports Ltd.The order came after an investigation by the Securities and Exchange Board of India (Sebi) into trading undertaken by Anupam Gupta in the scrip of Nucleus during the period from March 1, 2023, to June 16, 2023.

Sebi noted that Nitin Kumar Garg was employed by Nucleus as the Project Manager, Global Customer Services Team during the investigation period. Also, Garg and Anupam Gupta were connected as they are cousins, as per the order."I find that the noticees (Nitin Garg and Anupam Gupta have failed to demonstrate that they were not in possession of UPSI (unpublished price sensitive information), or any of the available defences in terms of... the PIT regulations are attracted.

"It is established that Nitin had communicated the UPSI to Anupam, who subsequently had traded in the scrip of Nucleus while being in possession of UPSI," Sebi's Adjudicating Officer Jai Sebastian said in the order.Accordingly, Nitin and Anupam flouted the insider trading rules, and the regulator imposed a penalty of Rs 15 lakh on Nitin Kumar Garg and Rs 10 lakh on Anupam Gupta.

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