Sebi fines individual for violating market norms while dealing in MCX scrip

New Delhi, Mar 20 () Markets regulator Sebi on Friday levied a fine of Rs 5 lakh on an individual for violating market norms while trading in the scrip of Multi Commodity Exchange of India (MCX).

The individual, Sumesh Parasrampuria, was an officer as defined under the code of conduct formulated by MCX.

The order follows an investigation conducted by Sebi in the scrip of MCX between April 2012 and July 2013.

Sebi noted that the individual and his father had sold shares of the MCX and the individual failed to obtain pre-clearance for the transaction done by his father.

By failing to take pre-clearance for trading of his father, the individual violated code of conduct of the MCX as well as provisions of the Prevention of Insider Trading norms.

Accordingly, a fine of Rs 5 lakh has been imposed on Sumesh Parasrampuria.

"The purpose of taking pre-clearance is to ensure that no person should take undue benefit of any information asymmetry," Sebi said. SRS HRS