Intellect Design's Arun Jain, daughter settle case with Sebi, pay Rs1.76 cr

Intellect Design Arena Ltd's promoter Arun Jain and his daughter Aarushi Jain have settled with Sebi an alleged insider trading case after paying Rs 1.76 crore collectively.

Arun paid Rs 1.35 crore towards settlement charges, while Aarushi paid Rs 40.93 lakh, which included Rs 22.31 lakh as settlement amount, Rs 13.68 lakh as disgorgement of alleged ill-gotten gains along with interest of Rs 4.84 lakh, Sebi said in a settlement order.

The order comes after the duo had filed separate settlement applications with Sebi proposing to settle the case "without admitting or denying the findings of fact and conclusions of law, through a settlement order".

" Pending enforcement proceedings for the alleged defaults ...are settled qua the applicants (Jains)," the order passed on Wednesday noted.

The Securities and Exchange Board of India (Sebi) had conducted an investigation into the insider trading activities in the scrip of Intellect Design Arena Ltd (IDAL) for the period February 13, 2018 to June 7, 2018.

IDAL on June 7, 2018 had informed the stock exchanges about its pact with IBM to deliver seamless digital transformation to the world's largest banks with IBM cloud.

Arun Jain, chairman and managing director and promoter of IDAL, was alleged to be in possession of the unpublished price sensitive information (UPSI) regarding the company's pact with IBM, the order noted.

Further, it was alleged that Arun communicated the same to his daughter, Aarushi, and also funded her trades.

Based on the UPSI communicated by her father, Aarushi bought one lakh shares of IDAL, it added.

Pursuant to the application filed by Jains, Sebi's high-powered advisory committee recommended the case for settlement on the payment of Rs 1.76 crore. Following this, they remitted the amount and settled the case with Sebi.