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Friday, October 04, 2019


Insider pays ₹1 cr to settle case with SEBI

 Insider pays Rs.1 cr to settle case with SEBI

The Indian share market regulator SEBI has settled an alleged insider trading case with an individual in Sabero Organics matter on payment of over Rs. 1 crore as settlement charges and disgorgement of illegal gains.

SEBI, during an investigation between 2019 May and June 2011, noted that Coromandel, after a meeting with the representatives of Sabero Organics, informed the bourses about the acquisition of the latter by it. 

The information related to the acquisition of Sabero Organics by Coromandel was deemed to be a price sensitive information and the period between May 15, 2011 to May 30, 2011 was unpublished price-sensitive information (UPSI) period, SEBI said.

The regulator SEBI observed that the individual, Mr. Kailash Pratap Mariwala, made a profit of over Rs.31.57 lakh by allegedly trading in the scrip of Sabero during the UPSI period. 

In view of trading during the UPSI period, Mariwala had allegedly violated Prohibition of Insider Trading Regulations.

However, while the proceeding was in progress, Mariwala filed a settlement application with SEBI and proposed to pay Rs.70.45 lakh as settlement amount along with Rs. 31.57 lakh of illegal gains and Rs.30.72 lakh of interest amount.

The total amount after the approval from the high powered advisory committee of SEBI was remitted by Mr. Kailash Pratap Mariwala in September 2019.

Accordingly, the probe in the matter has been disposed of by SEBI after the applicant remitted the settlement amount.

However, the regulator SEBI has said proceeding in the matter may be restored if representations made by the applicant are subsequently found to be untrue.


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