Arun Jain considers moving SAT against Sebi ban order

Software firm Polaris Chief Arun Jain considering approaching the Securities Appellate Tribunal (SAT) against market regulator Sebi's order of barring him from securities market for two years for alleged violation of insider trading norms.

"We are reviewing the order and considering filing an appeal before the SAT," Polaris Financial Technology has said in a statement.

It also said that the "current order does not take into consideration the detailed legal arguments that were presented challenging the re-opening of the consent order".

The company further said that the matter pertains to a 12-year-old transaction which was settled in accordance with law and based on the recommendation of the high-powered advisory committee of Sebi.

The settlement resulted in a consent order dated July 21, 2008 being passed pursuant to which the matter was closed.

Yesterday, Sebi had barred Polaris CMD and promoter Jain from securities market for two years for alleged insider trading in the company's shares.

After a probe into the dealings of shares during August- September 2000, Sebi said it found Jain guilty of norms related to insider trading, as it charged him of trading in the stock on the basis of 'unpublished price sensitive information' relating to a proposed acquisition by the firm.

It was alleged that by trading in the shares of the company based on the unpublished price sensitive information, Jain had made unfair gains to the tune of Rs 27.26 lakh.

Shares of the company plunged by 5.63% to settle at Rs 126.45 apiece on the BSE. During the trading session, it had touched a low of Rs 122.65.