Sebi suspends Wockhardt CFO for insider trading

Sebi has suspended Wockhardt's Company Secretary and CFO Rajiv B Gandhi from working as a compliance officer in any listed company for a period of 18 months.

The ruling came as a consent order from Sebi following an investigation on insider trading in the shares of Wockhardt between September 1, 1998 and December 31, 1999.

A Wockhardt spokesperson declined to comment and Gandhi did not respond to calls.

The investigation revealed that Gandhi, along with wife and sister, had dealt in the shares of the company on the basis of unpublished price-sensitive information in violation of the Sebi rules relating to insider trading.

It was alleged that the accused had manipulated trading on the basis of information in the unaudited financial results of the company for the quarters ended December 1998, March 1999 and September 1999 before they were made public.

While the regulatory proceedings were in progress, the Gandhis proposed for a settlement. As a part of settlement norms, Sebi has charged Rs 5 lakh from the accused, while ordering them to undergo a voluntary debarment from the securities market for a period of 18 months, which means that these persons would not be allowed to buy or sell shares in the securities market for the said period. Also, Rajiv Gandhi was suspended from working as compliance officer in any listed company for 18 months.