Sarala Ltd., public limited company is listed in Bombay Stock Exchange. Kamla is the Chief Financial Officer who works on the instruction of the Premlata. CEO of the Company. On the instruction of Premlata, Kamla has dea

On the instruction of Premlata, CEO of the Company, Kamla has dealt in securities trading and indulged in front running by using information received from Premlata for trading in some script and squared off trades along with trades of Premlata for making wrongful gain which is not an appropriate action of Kamla. Regulation 3 of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 lays down the provisions on prohibition of certain dealings in securities. It is provided that no person shall directly or indirectly – a) buy, sell or otherwise deal in securities in a fraudulent manner; b) use or employ, in connection with issue, purchase or sale of any security listed or proposed to be listed in a recognized stock exchange, any manipulative or deceptive device or contrivance in contravention of the provisions of the SEBI Act, 1992 or the rules or the regulations made there under; c) employ any device, scheme or artifice to defraud in connection with dealing in or issue of securities which are listed or proposed to be listed on a recognized stock exchange; d) engage in any act, practice, course of business which operates or would operate as fraud or deceit upon any person in connection with any dealing in or issue of securities which are listed or proposed to be listed on a recognized stock exchange in contravention of the provisions of the SEBI Act, 1992 or the rules and the regulations made there under. Further, Regulation 11A of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 provides the manner of service of summons and notices issued by the SEBI. It is provided that- (1) A summons or notice issued by the SEBI shall be served on the person through any of the following modes, namely- (a) by delivering or tendering it to that person or his duly authorised agent; or (b) by sending it to the person by fax or electronic mail or electronic instant messaging services along with electronic mail or by courier or speed post or registered post. However, the courier or speed post or registered post shall be sent to the address of his place of residence or his last known place of residence or the place where he carried on, or last carried on, business or personally works, or last worked, for gain, with acknowledgment due. Further, a summons or notice sent by fax shall bear a note that the same is being sent by fax and in case the document contains annexure, the number of pages being sent shall also be mentioned. Also, a summons or notice sent through electronic mail or electronic instant messaging services along with electronic mail shall be digitally signed by the competent authority and bouncing of the electronic mail shall not constitute valid service. (2) In case of failure to serve a summons or notice through any one of the modes as mentioned above, the summons or notice may be affixed on the outer door or some other conspicuous part of the premises in which the person resides or is known to have last resided, or carried on business or personally works, or last worked, for gain and a written report thereof shall be prepared in the presence of two witnesses. (3) In case of failure to affix the summons or notice on the outer door, the summons or notice shall be published in at least two newspapers, one of which shall be in an English daily newspaper having nationwide circulation and another shall be in a newspaper having wide circulation published in the language of the region where that person was last known to have resided or carried on business or personally worked for gain.