Sebi orders impounding of Rs 2.15 cr in insider trading case

Market regulator Sebi today ordered impounding of Rs 2.15 crore lying in the bank accounts of four individuals with immediate effect after finding them guilty in an insider trading case.
Besides, the regulator has directed to freeze the demat accounts of these individuals in case they do not have sufficient funds in their bank accounts.
Sebi found that Gopalkrishanan C and V Karuppiah had allegedly traded in the scrip of Sabero Organic Gujarat on the basis of 'unpublished price sensitive information' (UPSI) in 2011 pertaining to the acquisition of shares of Sabero by Coromandel International.
The information was allegedly leaked by Coromandel Chairman A Vellayan and his relative A R Murugappan.

"...Prima facie it appears that the trading by Gopalkrishnan was based on the knowledge of UPSI. Further, the trading of Karuppiah (HUF) also appear to be based on the knowledge of UPSI...It appears that the UPSI had passed on from Vellayan and Murugappan," Sebi said in an order.
Accordingly, Sebi has directed to "impound the unlawful gains of Rs 1.92 crore (including interest) made by Gopalakrishnan and Rs 23.43 lakh (including interest) made by Karuppiah (HUF) lying in the bank accounts of Gopalakrishnan, Karuppiah (HUF), Murugappan and Vellayan with immediate effect."

In case, funds are found to be insufficient to meet the figure of unlawful gains, then the securities lying in the demat account of these persons would be frozen to the extent of the remaining value, the regulator added.

These direction would come into force with immediate effect.
Securities and Exchange Board of India found that Gopalkrishnan and Karuppiah (HUF) had made unlawful gains to the tune of over Rs 1.30 crore and Rs 15.93 lakh respectively.
In a separate order, Sebi has imposed a penalty of Rs 8 lakh on Nature India Communique for allegedly failing to disclose shareholding disclosures within the required timeline.
Nature India Communique failed to comply with SAST (Substantial Acquisition of Shares and Takeovers) Regulations, it added.