Market regulator Sebi today disposed of the case against one of the employees of Orchid Chemicals and Pharmaceuticals Ltd (OCPL) in a matter related to violations of insider trading norms.
Sebi had alleged that P N Deshpande, as an employee of OCPL, had indulged in opposite transactions -- buying as well as selling the shares of a company within a period of six months, violating insider trading norms.
In its order, the regulator said the quantity of shares involved in the transaction by Deshpande was "miniscule" and records did not show that by such dealing, he had "acquired wrongful gain or caused any wrongful loss to the others".
"It is not the case that the Noticee (Deshpande) tried to do any unfair insider trading or influence the price of the scrip in any manner," Sebi said.
It also noted that Deshpande was not privy to any of the important or sensitive information which was discussed by the Board of OPCL and which allured him to trade in the company's shares. In addition, Sebi observed that available records do not suggest that default by Deshpande is repetitive in nature.
"I note the fair admission by the Noticee (Deshpande) towards the allegation and the assurance given by him not to do such activity in future coupled with a request of pardon," Sebi's Adjudicating Officer P K Kuriachen said.
"I am of the view that OCPL has taken appropriate remedial actions against the noticee for his breach by way of issuing a warning notice to him," he added.
Sebi probe into the alleged irregularities in shares of OCPL revealed that certain designated employees of the company including Deshpande had done opposite transactions from October 30 to December 4, 2009.