Regulations
SEBI drops insider trading case against Orchid Chemicals

SEBI probe into the alleged irregularities in shares of Orchid Chemicals revealed that certain designated employees of the company including Deshpande had done opposite transactions in 2009

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has disposed of the case against one of the employees of Orchid Chemicals and Pharmaceuticals Ltd (OCPL) in a matter related to violations of insider trading norms, reports PTI.

 

SEBI had alleged that PN Deshpande, as an employee of OCPL, had indulged in opposite transactions -- buying as well as selling the shares of a company within a period of six months, violating insider trading norms.

 

In its order, the regulator said the quantity of shares involved in the transaction by Deshpande was "miniscule" and records did not show that by such dealing, he had "acquired wrongful gain or caused any wrongful loss to the others".

 

"It is not the case that the Noticee (Deshpande) tried to do any unfair insider trading or influence the price of the scrip in any manner," SEBI said.

 

It also noted that Deshpande was not privy to any of the important or sensitive information which was discussed by the Board of OPCL and which allured him to trade in the company's shares.

 

In addition, SEBI observed that available records do not suggest that default by Deshpande is repetitive in nature.

 

"I note the fair admission by the Noticee (Deshpande) towards the allegation and the assurance given by him not to do such activity in future coupled with a request of pardon," SEBI's Adjudicating Officer PK Kuriachen said.

 

"I am of the view that OCPL has taken appropriate remedial actions against the noticee for his breach by way of issuing a warning notice to him," he added.

 

SEBI probe into the alleged irregularities in shares of OCPL revealed that certain designated employees of the company including Deshpande had done opposite transactions from 30th October to 4 December 2009.

User

COMMENTS

shagydeep

4 years ago

I think SEBI is planning for something big as per the industrial development. And in that http://www.paarichemresources.com">Chemical Importers in India is on the lead...

uttam

4 years ago

does SEBI HAS GUTS TO SETUP AN ENQUIERY/INVESTIGATIONS AGAINST RESURGERE MINES AND SUBHASH SHARMA? SEBI IS FAKE IN ITSELF :(

SEBI slaps Rs5 lakh fine on a individual in Betala Global trading case

SEBI said Jalaj I Batra indulged in circular/reversal synchronised trades with other brokers and clients in Betala Global Securities shares

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has slapped a fine of Rs5 lakh on an individual for allegedly facilitating fraudulent trading practices in shares of Betala Global Securities Ltd (BGSL), reports PTI.

 

SEBI said a Jalaj I Batra indulged in circular/reversal synchronised trades with other brokers and clients in the shares of Betala Global Securities.

 

"...impose a total penalty of Rs5 lakh on the noticee (Batra)...the penalty is commensurate with the default committed by the noticee," SEBI said in its order.

 

In a probe conducted by SEBI, the regulator found a spurt in the share price of BGSL during 2nd May-21 November 2003. The regulator said the company's scrip price jumped by 254% and a total of 1.54 crore shares were traded.

 

SEBI said a group of clients connected to each other i.e., a Mahesh Mistry traded in the shares of the BGSL.

 

Batra, being a part of Mahesh Mistry Group, bought 15.35 lakh shares for Rs9.41 crore and sold a total of 6.04 lakh scrips valued Rs 6.45 crore.

 

"The noticee purchased 10.91% of the total market volume and sold 6.29% respectively. The noticee contributed 9.96% and 3.92% of the circular trades buy and sell volume respectively," SEBI said.

 

SEBI also said that evidence is suggesting that the Mahesh Mistry Group, of which noticee was a part, followed a modus operandi of artificially inflating the price and creating false volumes by executing the synchronised transactions through their brokers.

User

Insurance Trends

Life Insurance: IndiaFirst Life Simple Benefit

Endowment plan with decent life cover and...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)