Ms. Chandana Ghosh vs Sebi

Date of decision: 09/10/2015

Ms. Chandana Ghosh Flat No.3B, Anchor Building, 50 D/1, Purna Das Road, P. S. Gariahat, Kolkata - 700 029. ... Appellant

Versus

Securities & Exchange Board of India SEBI Bhavan, C-4A, G-Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051. ... Respondent

Mr. P.N. Modi, Senior Advocate a/w Mr. Neville Lashkari and Ms. Anannya Ghosh, Advocates for the Appellant.

Mr. Kevic Setalvad, Senior Advocate a/w Ms. Shruti Chiniwar and Mr. Saurabh Bachhawat, Advocates i/b K. Ashar & Co. for the Respondent.

CORAM : Justice J.P. Devadhar, Presiding Officer Jog Singh, Member

Per : Justice J.P. Devadhar (Oral)

1.

The Appellant is aggrieved by the order passed by the Adjudicating

Officer on 7th July, 2014 whereby penalty of Rs.5 lakh is imposed on the

Appellant under Section 15(A)(b) of Securities and Exchange Board of India

Act, 1992 for violating Sections 13(4) & 13(5) of the Securities and Exchange

Board of India (Prohibition of Insider Trading) Regulations, 1992.

2. During the course of arguments, Counsel for the Appellant brought to

our notice subsequent decision passed by another Adjudicating Officer of -2-

SEBI in case of A.K. Chowdhury wherein a view is taken which in our

opinion is a view contrary to the view taken in the present case.

3. Since the dispute in the present case relates to the decision of SEBI in

holding that the Appellant working as Head-Human Resource &

Competency Development of the Trade Marketing and Distribution, in ITC

Ltd. is an 'officer' under Regulation 13(4) of SEBI (Prohibition of Insider

Trading) Regulations, 1992, and in the case of Shri A.K. Chowdhury working

as Head-Operations in Education and Stationery Products Strategic Business

Unit of ITC Ltd., the Adjudicating Officer of SEBI has held on 26th February,

2015 that Shri A.K. Chowdhury does not fall within the category of 'officer' of

ITC Ltd., in our opinion, it is just and proper to set aside the impugned order

and restore the matter to the file of Adjudicating Officer-SEBI, for passing

fresh order on merits and in accordance with law.

4. Accordingly, the impugned order dated 7th July, 2014 is quashed and

set aside and the Adjudicating Officer is directed to pass fresh order on

merits and in accordance with law, as expeditiously as possible and in any

event within a period of six months from today, after giving an opportunity

of hearing to the Appellant.

5. The Appeal is disposed of in the above terms with no order as to costs.

Sd/-

Justice J.P. Devadhar Presiding Officer

Sd/-

Jog Singh Member

09/10/2015 Prepared & compared by-ddg