SEBI Fines JM Financial for Insider Trading

The Securities and Exchange Board of India (SEBI) has imposed a total penalty of Rs 2.1 crore on JM Financial Asset Management, its former CEO Bhanu Katoch, and five others for engaging in unfair trade practices related to the sale of defaulted DHFL bonds. The penalties include Rs 1.1 crore on Katoch and Rs 22 lakh on Deepen Doshi, head of institutional sales, for misusing non-public information to invest prior to a valuation change. SEBI's investigation revealed that these individuals profited over Rs 1 crore collectively by making investments before informing unitholders, violating regulatory norms. Additionally, Federal Capital Markets Ltd was fined Rs 3 lakh for conducting unauthorized financial activities and compliance breaches. The regulators emphasized the importance of maintaining fair trading practices to ensure market integrity. The fines must be settled within 45 days as per SEBI's order.