Sebi bars Ramsarup Industries' CMD from market for 3 yrs

Market regulator Sebi today barred Ramsarup Industries chairman and managing director Aashish Jhunjhunwala from capital markets for three years after finding him guilty of violating insider trading regulations.
Besides, Jhunjhunwala has been ordered to disgorge about Rs 98.12 lakh within 45 days from the date of this order.
"The noticee (Jhunjhunwala) being an insider, did trade in the shares of the company, while in possession of Unpublished Price Sensitive Information, specifically during the period when the trading window was closed by the company and thus violated...PIT (Prohibition of Insider Trading) Regulations," Sebi said in its order.
"By trading in the shares during the said period, the noticee indeed avoided a potential loss of Rs 98.11 lakh," it added.

A Sebi probe found that the company had informed NSE on July 28, 2010, that a meeting of its board of directors would be held on August 13, 2010, to declare its financial results for the quarter ended June 30, 2010.
Thereafter, the company disclosed its financial results. The net profit of the firm slumped to Rs 5.88 crore from 14.41 crore. The share price of the company prior to the declaration of financial results was in the range of Rs 106-120. Following the announcement, share price drop to Rs 85 and further fell to Rs 61.5.
Jhunjhunwala sold 5.26 lakh shares at an average price of Rs 109.33 to the investors, by making use of the unpublished price sensitive information, thereby avoiding a potential loss of Rs 98.11 lakh.

Accordingly, Sebi has restrained Jhunjhunwala "from buying, selling or dealing in securities market, directly or indirectly, for a period of three years.