SAT upholds SEBI order against Ranbaxy’s independent director
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The Rs200 crore strategic investment by Ranbaxy into OCPL was undoubtedly price sensitive and the information was unpublished when the Kauls traded to gain profits, SEBI had said.
More in Moneylife
Is the Modi govt helping Ponzi, MLMs become legal? +11049 views
TODAY'S TOP STORIES
Insurance problems: How to get justice from Ombudsman in a cost-effective way
- Is the Modi govt helping Ponzi, MLMs become legal?
- The ‘Made in India’ Problem
- Why are ex-servicemen disillusioned with successive govts?
- From Flipkart to Flopkart in one BigBillionDay
- Modi’s target to put India in the top 50 in ‘Ease-Of-Doing-Business’ a pipedream?
- Aadhaar: Is the Modi govt moving against the Supreme Court order?
What's your say?
What you said
Thanks for casting your votes! View Previous Polls