Connect with Us
Moneylife - Facebook Moneylife - Twitter Moneylife - Linkedin Moneylife - Youtube Moneylife Rss feed

Moneylife » Investing » Regulations » SAT upholds SEBI order against Ranbaxy’s independent director

SAT upholds SEBI order against Ranbaxy’s independent director

Moneylife Digital Team | 08/10/2012 05:21 PM | 

SAT upheld charges of insider trading against VK Kaul, a former independent director of Ranbaxy, and his wife Bala Kaul

The Securities Appellate Tribunal (SAT) on Monday upheld charges levied by the market regulator Securities and Exchange Board of India (SEBI) against VK Kaul, an ex-independent director of Ranbaxy Laboratories, and his wife Bala Kaul.  SEBI had alleged that Kaul, on behalf of his wife bought and sold Ranbaxy shares when he had knowledge that the pharma company’s unit Solrex was in the process of buying shares in Orchid Chemicals and Pharmaceutical (OCPL). While VK Kaul has been fined Rs50 lakh, Bala Kaul has been fined for Rs10 lakh, in two separate orders.

The regulator had said that Kaul, during 17 March 2008 to 9 April 2008, had provided funds to his wife for trading in the shares of Orchid Chemicals. Kaul was serving as an independent director at the time when his wife bought 35,000 shares of OCPL at Rs131.71 per share on 31 March 2008, closely prior to when Solrex started buying OCPL Shares. Later on 10 April 2008, Kaul sold these shares at Rs219.94 per share.

The Rs200 crore strategic investment by Ranbaxy into OCPL was undoubtedly price sensitive and the information was unpublished when the Kauls traded to gain profits, SEBI had said.

Post Comment


1 Comment
R Balakrishnan

R Balakrishnan 3 years ago

This gentleman was a long serving employee of Ranbaxy. Independent director my foot! Just because I retire and take a break for three years with no income from my employer and then become a director makes me "independent" as per rules!!

Reply »Link » Report abuse
Daily Newsletter

1,00,000 Readers

Follow Moneylife
DNL facebook icon DNL linked in icon DNL twitter icon DNL youtube icon DNL rss icon
Moneylife Magazine

Grab a Discount Coupon here

What's your say?

Will rising costs spoil the promise of Achhe Din?
Can't Say
Enter Code : secure code
    change code

What you said

Will the Gold Monetisation & Sovereign Bond Scheme help reduce demand of physical gold and fish out 20,000 tonnes of the yellow metal lying idle?

Thanks for casting your votes! View Previous Polls

Join Over 100,000 Awesome Readers

  1. News that Mainstream media does not always cover
  2. Views that are bold and unbiased
  3. Reports that focus on your interests as consumer, investor & citizen