High powered settlement committee accepted the settlement terms proposed by the applicant -THE SECURITY AND EXCHANGE BOARD OF INDIA
High powered settlement committee accepted the settlement terms proposed by the applicant -THE SECURITY AND EXCHANGE BOARD OF INDIA A settlement application filed by the applicant Mr. S. Madhavan and admitting the allegations made in the show cause notice without demanding a personal hearing under settlement regulations,2018 the proceedings were done under S.K. MOHANTY and ANANTA BARUA (WHOLE TIME MEMBER) in settlement application no. 6559 of 2021 A show cause notice was sent to applicant the Independent Director of UFO Movie India Limited the allegation made of that applicant an independent director came across an high sensitive information about the amalgamation of two firms and traded it in the scrip of the company hence the applicant  was alleged to have violated Regulation 4(1) of the PIT Regulations and Sections 12A(d) and 12A(e) of the SEBI Act . Pursuant to the settlement application the High-Powered Advisory Committee considered the settlement terms proposed by the applicant and the disgorgement amount along with 12% simple interest. Considering the settlement done the members exercised the powers conferred under Section 15JB of the Securities and Exchange Board of India Act, 1992 and in terms of Regulations 23 read with Regulation 28 of the Settlement Regulations and placed certain terms and condition and the settlement application was concluded.
SO EFD 2 SD 396 JANUARY 2022 BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA SETTLEMENT ORDER in Settlement Application No. 65521 filed by Mr. S. Madhavanin the matter of UFO Moviez India Limited 1. Mr. S. Madhavanfiled a settlement application in terms of the SEBIRegulations 2018proposing to settle without admitting or denying the findings of fact and conclusions of law through a settlement order pending enforcement proceedings initiated against him vide Show Cause Notice bearing No. IVD ID 07 PD SCN UFO 16456 2021 dated July 27 2021 for the alleged violation of Regulation 4(1) of SEBIRegulations 2015and Sections 12A(d) and 12A(e) of the Securities and Exchange Board of India Act 1992from November 20 2014 till September 19 2019. Vide a press release dated November 01 2017 the information related to the composite scheme of arrangement and amalgamation between UFO Moviez India Limited and Qube Cinema Technologies Private Limited was made public. Prior to its publication this information was considered to be a price sensitive information. The applicant by virtue of being the Independent Director of the company came into possession of the price sensitive information and traded in the scrip of the company. In view thereof the applicant was alleged to have violated Regulation 4(1) of the PIT Regulations and Sections 12A(d) and 12A(e) of the SEBI Act. 3. Pursuant to the receipt of the application the authorized representative of the applicant had a meeting with the Internal Committee of SEBI on October 08 2021 and deliberated Settlement Order in respect of Mr. S Madhavan in the matter of UFO Moviez India Limited on the terms of the settlement. Thereafter the applicant vide e mail dated October 20 2021 proposed the revised settlement terms to settle the proceedings initiated against him. 4. The High Powered Advisory Committeein its meeting held on November 09 2021 considered the settlement terms proposed by the applicant and recommended the case for settlement upon payment of ₹19 12 500 Rupees Nineteen Lakh Twelve Thousand Five Hundred only) as settlement amount and ₹1 59 499 as disgorgement amount along with 12% simple interest thereupon from the date of default till the date of submission of Revised Settlement Termsamounting to ₹76 140 (Rupees Seventy Six Thousand One Hundred and Forty only). The aforesaid amount was remitted by the applicant on December 13 2021. The receipt of the above payment is confirmed. 5. In view of the above in exercise of the powers conferred under Section 15JB of the Securities and Exchange Board of India Act 1992 and in terms of Regulations 23 read with Regulation 28 of the Settlement Regulations it is hereby ordered that the proceedings that may have been initiated for the default as mentioned in paragraph 1 above are settled qua the applicant as per the following terms: SEBI shall not initiate enforcement action against the applicant for the said default this order disposes of the proceedings that may be initiated for the said default as mentioned above in respect of the applicant and iii. passing of this order is without prejudice to the right of SEBI under Regulation 28 of the Settlement Regulations to take enforcement actions including commencing proceedings against the applicant if SEBI finds that: any representation made by the applicant in the present settlement proceedings is subsequently found to be untrue b. the applicant has breached any of the clauses conditions of undertakings waivers filed during the present settlement proceedings and there was a discrepancy while arriving at the settlement terms. Settlement Order in respect of Mr. S Madhavan in the matter of UFO Moviez India Limited 6. This settlement order is passed on this 20th day of January 2022 and shall come into force with immediate effect. 7. In terms of Regulation 25 of the Settlement Regulations a copy of this order shall be sent to the applicant and also be published on the website of SEBI. sd sd S.K. MOHANTY WHOLE TIME MEMBER ANANTA BARUA WHOLE TIME MEMBER Settlement Order in respect of Mr. S Madhavan in the matter of UFO Moviez India Limited 