PC Jeweller was down 5.41% to Rs 24.50 after market regulator Sebi on Tuesday ordered to impound Rs 8 crore from the company's promoters in insider trading case.
Equity market regulator Sebi on Tuesday ordered impounding of alleged unlawful gains of more than Rs 8 crore made by two promoters and related entities of PC Jeweller in an insider trading case.The two promoters are Shivani Gupta and Sachin Gupta, and others are Amit Garg and Quick Developers (QDPL). The ruling came after a probe into the movement of share price of PC Jeweller during the April-July 2018 period.
Sebi noted that Shivani, Sachin, Amit and QDPL being insiders have prima facie violated the insider trading regulations, by trading in the shares of PC Jeweller when in possession of UPSI (unpublished price sensitive information) pertaining to the company's buyback of shares.
On 10 May 2018, PC jeweller informed that its board of directors in its meeting held on that date had approved a buyback of equity shares at a price not exceeding Rs 350 per equity share of Rs 10 each for an aggregate amount not exceeding Rs 424 crore. Thereafter, on 13 July 2018, PC Jeweller informed that the board of directors had withdrawn the aforesaid buyback of equity shares with immediate effect.
Accordingly, the regulator said a sum of over Rs 6.17 crore should be impounded jointly and severally from Shivani, Sachin and Amit Garg. In addition, over Rs 2.13 crore should be impounded jointly and severally, from QDPL and Amit Garg.
Meanwhile, the S&P BSE Sensex was up 166 points or 0.40% to 41518.52.
On the BSE, 6.74 lakh shares were traded in the counter so far compared with average daily volumes of 12.93 lakh shares in the past two weeks. The stock hit a high of Rs 25.05 and a low of Rs 24.05 so far during the day.
The stock hit a 52-week high of Rs 167.6 on 18 Apr 2019. The stock hit a 52-week low of Rs 20.6 on 11 Dec 2019.
On a consolidated basis, PC Jeweller's net profit fell 51.2% to Rs 46.38 crore on 29.6% decline in net sales to Rs 1,212.19 crore in Q2 September 2019 over Q2 September 2018.
PC Jeweller is engaged in the business of manufacture, retail and export of jewelry.
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